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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
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 ensure that 40% of next month's sales are in the finished goods inventory. Merriweather also purchases sufficient raw materials (legs) to ensure 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 August September 3,200 3,400 3,000 Merriweather's ending inventories in units for June 30 are: Finished goods 2,800 Raw materials (legs) 4,900 Assume the required production for August and September is 2,500 units and 2,700 units, respectively, and the July 31 raw materials (legs) inventory is 5,100 units. The number of table legs to be purchased in August is: 11,380 legs. 10,000 legs. 13,000 legs. () 8,620 legs
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