Question

*Merriweather Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Merriweather, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 20 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40% of next month's sales are in the finished goods inventory. Merriweather also purchases sufficient raw materials (legs) to ensure that raw materials (legs) inventory is 60% of the following month's scheduled production needs. Merriweather's sales budget in units for the next quarter is as follows: (CMA adapted)
  

July	2,300
August	2,500
September	2,100

Merriweather's ending inventories in units for June 30 are:

  

Finished goods	1,900
Raw materials (legs)	4,000

The number of tables to be produced during August is:

Answer 1

Final Answer:	The number of tables to be produced during August is: 2340 tables
		July	August	September
	Sales Budget Units	2,300	2,500	2,100
	Add: Desired Ending Inventory	1,000	840
	Total Available	3,300	3,340	2,100
	Less: Beginning Inventory	1,900	1,000	840
	No. of tables to be produced	1,400	2,340