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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:July 2,300 August 2,500 September 2,100 。 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 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. Assume Rokat’s required production for August and September is 1,600 and 1,800 units, respectively, and the July 31 direct materials inventory is 4,200 units. The number of table legs to be purchased in August is A. 6,520 legs. B. 9,400 legs. C. 2,200 legs. D. 6,400 legs. |