(CMA)Table Top Produces Tables Sold to Discount Stores

Multiple Choice

(CMA) 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:
Table Top's ending inventories in units for June 30, 20x5 are:

The number of tables to be produced during August, 20x5 is:

A) 1,400 tables
B) 2,340 tables
C) 1,440 tables
D) 1,900 tables