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18 August, 01:16

Tucker Company makes chairs. Tucker has the following production budget for January - March. January February March Units Produced 9,646 10,993 8,559 Each chair produced uses 5 board feet of wood. Management wants ending inventory levels of raw materials to equal 20% of the production needs (in wood) for the next month. How many board feet of wood does Tucker need to purchase in February

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  1. 18 August, 04:59
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    Total = 45,684 feet

    Explanation:

    Giving the following information:

    Production budget:

    February = 10,993

    March = 8,559

    Each chair produced uses 5 board feet of wood.

    Management wants an ending inventory level of raw materials to equal 20% of the production needs (in wood) for the next month.

    Direct material budget:

    Production = 10,993*5 = 54,965

    Desired ending inventroy = (8,559*5) * 0.2 = 1,712

    Beginning inventory = (10,993*5) * 0.2 = (10,993)

    Total = 45,684 feet
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