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| Rokat Corporation is a manufacturer of tables sold to Rokat’s sales budget in units for the next quarter is as schools, restaurants, hotels, and other institutions. The table follows: tops are manufactured by Rokat, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches July 2,300 the four purchased table legs. It takes 20 minutes of labor to August 2,500 assemble a table. The company follows a policy of September 2,100 producing enough tables to ensure that 40% of next month’s sales are in the finished goods inventory. Rokat also Rokat’s ending inventories in units for June 30 are purchases sufficient direct materials inventory to ensure that direct materials inventory is 60% of the following month’s Finished goods 1,900 scheduled production. Direct materials (legs) 4,000.The number of tables to be produced by Rokat during August is A. 1,400 tables. B. 2,340 tables. C. 1,440 tables. D. 1,900 tables. |