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

Question

Jaxon Harrison

Business

18 July, 14:18

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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Answers (1)

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Kelvin Williamson · Answer 1

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