Question
Cathy Company is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The tabletops are manufactured by Cathy, but the table
Cathy Company is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The tabletops are manufactured by Cathy, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured tabletop and attaches the four purchased table legs. Assume the required production for August and September is 1,800 and 1,600 tables, respectively. Cathy purchases sufficient direct materials to ensure that direct materials inventory is 60% of the following month's production needs. This requirement was met at the end of July. The number of table legs to be purchased in August is: 7,200 legs 6,880 legs 1,680 legs 6,720 legs O 6,400 legs
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