Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Rokat, 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 18 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next month's sales are in the finished goods inventory. Rokat also purchases sufficient materials to ensure that materials inventory is 60 percent of the following month's scheduled production. Rokat's sales budget in units for the next quarter is as follows: July August September 2,300 2,500 2,100 Rokar's ending inventories in units for June 30 are as follows: Finished goods Materials (legs) 1,900 4,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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2. Calculate the number of tables to be produced during August.

Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and
other institutions. The table tops are manufactured by Rokat, 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 18 minutes of labor to
assemble a table. The company follows a policy of producing enough tables to ensure
that 40 percent of next month's sales are in the finished goods inventory. Rokat also
purchases sufficient materials to ensure that materials inventory is 60 percent of the
following month's scheduled production. Rokat's sales budget in units for the next
quarter is as follows:
July
August
September
2,300
2,500
2,100
Rokat's ending inventories in units for June 30 are as follows:
Finished goods
Materials (legs)
1,900
4,000
Transcribed Image Text:Rokat Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Rokat, 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 18 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next month's sales are in the finished goods inventory. Rokat also purchases sufficient materials to ensure that materials inventory is 60 percent of the following month's scheduled production. Rokat's sales budget in units for the next quarter is as follows: July August September 2,300 2,500 2,100 Rokat's ending inventories in units for June 30 are as follows: Finished goods Materials (legs) 1,900 4,000
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