Solved: Ingles Corporation is a manufacturer of tables sold

to schools
Ingles Corporation is a manufacturer of tables sold to schools

Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other
institutions. The table tops are manufactured by Ingles, 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 16 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. Ingles also purchases sufficient materials to ensure that
materials inventory is 60 percent of the following month’s scheduled production. Ingles’s sales
budget in units for the next quarter is as follows:

July ........... 2,450

August ........... 2,900

September ........... 2,100

Ingles’s ending inventories in units for July 31 are as follows:

Finished goods ........ 1,900

Materials (legs) ........ 4,000

Required:

1. Calculate the number of tables to be produced during August.

2. Disregarding your response to Requirement 1, assume the required production units for
August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is
4,000 units. Compute the number of table legs to be purchased in August.

3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees
will be required for the Assembly Department in September? (Fractional employees are
acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a
4-week month.) (CMA adapted)

Ingles Corporation is a manufacturer of tables sold to schools

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