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 insure that 40% of next month's sales are in the finished goods inventory.Merriweather also purchases sufficient raw materials (legs) to insure 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)
Merriweather's ending inventories in units for June 30 are:
Disregarding your response to the previous question,assume the required production for August and September is 1,600 and 1,800 units,respectively,and the July 31 raw materials (legs) 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) 6,280 legs.
D) 6,400 legs.
Correct Answer:
Verified
Q56: The manufacturing overhead budget at Rost Corporation
Q59: Rerun Manufacturing Company is in the
Q61: The following budgeted information is provided:
Q62: The Arkansas Company makes and sells a
Q65: Which of the following represents the correct
Q67: Ari,Inc.is working on its cash budget for
Q70: Which one of the following budgets would
Q76: Which of the following types of accounts
Q80: Which of the following budgets does not
Q83: Cash disbursements would not include payments for:
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents