Question

Towson Company manufactures book cases, and each requires 22 board feet of lumber. Towson expects that...

Towson Company manufactures book cases, and each requires 22 board feet of lumber. Towson expects that 1,800 and 1,750 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 40% of the next month's production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June. (Round & enter final answers to the nearest whole number.)

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Answer #1

Expected production in June (A) = 1,800 book cases

Lumber Required per unit (B) = 22 board feet

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Lumber required for production (A*B) = 39,600 board feet

Add: Desired Closing Stock = 15,400 board feet

(40%*1,750*22)

Less: Opening Stock = 15,840 board feet

Board feet required to bought in June = 39,160 board feet

Note: Opening Stock will be equal to closing stock of last month, which is equal to 40% of June's production needs.

= 40%*1800*22

=15,840 board feet

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