Question
Lynn Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Lynn, but the table
Lynn Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Lynn, 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. Lynn also purchases sufficient raw materials (legs) to insure that raw materials (legs) inventory is 60% of the following month's scheduled production needs. Lynns sales budget in units for the next quarter is as follows: July 2,300
August 2,500
September 2,100 Lynn's ending inventories in units for June 30 are: Finished goods 1,900
Raw materials (legs) 4,000
Required:
a) The number of tables to be produced during August is:?
b) 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: ?
c) Assume that Lynn Corporation will produce 1,800 units in the month of September. How many employees will be required for the Assembly Department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started