Table Top Produces Tables Sold to Discount Stores $\begin{array} { l l } \text { July } & 2,300 \\ \text { August } & 2,500 \\ \text { September } & 2,100 \end{array}$

question 26

Multiple Choice

Table Top produces tables sold to discount stores. The table tops are manufactured in Canada by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labour 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. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following month's scheduled production. Table Top's sales budget in units for the next quarter is as follows: $\begin{array} { l l } \text { July } & 2,300 \\ \text { August } & 2,500 \\ \text { September } & 2,100 \end{array}$ .

Table Top's ending inventories in units for June 30, 20×5 are:

$\begin{array}{ll}\text { Finished goods } & 1,900 \\\text { Raw materials (legs) } & 4,000\end{array}$
The number of tables to be produced during August, 20x5 is:

• A) 1,400 tables
• B) 2,340 tables
• C) 1,440 tables
• D) 1,900 tables

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