Solved

Merriweather Corporation Is a Manufacturer of Tables Sold to Schools,restaurants,hotels,and

Question 64

Multiple Choice

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)
 July 2,300 August 2,500 September 2,100\begin{array} { | l | r | } \hline \text { July } & 2,300 \\\hline \text { August } & 2,500 \\\hline \text { September } & 2,100 \\\hline\end{array} Merriweather's ending inventories in units for June 30 are:
 Finished goods 1,900 Raw materials (legs)  4,000\begin{array} { | l | r | } \hline \text { Finished goods } & 1,900 \\\hline \text { Raw materials (legs) } & 4,000 \\\hline\end{array} 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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents