In: Accounting
Based on the information available in the question, we can calculate the number board feet of lumber that Towson company should buy as follows:-
Particulars | No.of cases | Board feet per case | Total |
June sales(A) | 2,000 | 38 | 76,000 |
Add:- July sales | 1,750 | 38 | 9,975 (1,750 * 38 * 15%) |
Less:- Opening Stock(A * 35%) | 700 | 38 | 26,600 |
Units to be purchased | 59,375 feet |
The number of board feet that towson company should buy in june is 59,375 feet per the calculations above