Reference no: EM132547388

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:

              July          August          September

Sales:      2,300      2,500                 2,100

Table Top's ending inventories in units for June 30, 2022 are:

Finished goods (units)1,900

Raw materials (legs)4,000

Question 1: The number of tables to be produced during August, 2022 is:

Group of answer choices

Option 1: 1,440 tables

Option 2: 1,400 tables

Option 3: 2,340 tables

Option 4: 1,900 tables