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Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table 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 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. Rokat also purchases sufficient raw materials to ensure that raw materials inventory is 60% of the following month's scheduled production. Rokat's sales budget in units for the next quarter is as follows:
Assume the required production for August and September is 1,600 and 1,800 units, respectively, and the July 31 raw materials inventory is 4,200 units. The number of table legs to be purchased in August isA. 6,520 legs. B. 2,200 legs. C. 6,400 legs. D. 9,400 legs. |