Lynndorf Corporation is a manufacturer of tables sold to schools,restaurants,hotels,and other institutions.The table tops are manufactured by Lynndorf,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.Lynndorf also purchases sufficient raw materials (legs)to insure that raw materials (legs)inventory is 60% of the following month's scheduled production needs.Lynndorf's sales budget in units for the next quarter is as follows: (CMA adapted) Lynndorf's ending inventories in units for June 30 are: The number of tables to be produced during August is:

Question

Lynndorf Corporation is a manufacturer of tables sold to schools,restaurants,hotels,and other institutions.The table tops are manufactured by Lynndorf,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.Lynndorf also purchases sufficient raw materials (legs)to insure that raw materials (legs)inventory is 60% of the following month's scheduled production needs.Lynndorf's sales budget in units for the next quarter is as follows: (CMA adapted)  Lynndorf's ending inventories in units for June 30 are:  The number of tables to be produced during August is:

Quizplus · Accepted Answer

To determine the number of tables to be produced during August, we need to calculate the total sales demand for the month, the desired ending finished goods inventory, and the required production (taking into account the beginning finished goods inventory).

Total sales demand for August: 
15,000 (July sales) + 16,000 (40% of August sales) = 31,000 tables

Desired ending finished goods inventory:
9,300 tables (given)

Required production:
31,840 tables (total demand: 31,000 + ending inventory: 9,300 - beginning inventory: 8,460)

To produce 31,840 tables, we need to assemble 31,840 tops with legs. Since it takes 20 minutes to assemble one table, the total production time required is:

31,840 tables x 20 minutes per table = 636,800 minutes

Assuming an 8-hour workday, there are 480 minutes available each day. Therefore, the total number of production days required is:

636,800 minutes ÷ 480 minutes per day = 1,326.67 days

Since we can't have fractional days, we need to round up to the nearest whole day. Therefore, the total number of production days required is:

1,327 days

Assuming 22 workdays in August (31 days total - 9 weekend days), the number of tables to be produced during August is:

31,840 tables ÷ 1,327 days x 22 workdays = 528.7 tables per day

Again, we can't produce fractional tables, so we need to round up to the nearest whole table. Therefore, the number of tables to be produced during August is:

529 tables per day x 22 workdays = 11,638 tables

Adding the beginning finished goods inventory (8,460 tables), the total number of tables to be produced during August is:

11,638 tables + 8,460 tables = 20,098 tables

Therefore, the best choice is B, 2,340 tables.

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