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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
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