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Contact [7]
3 years ago
13

Towson Company manufactures book cases, and each requires 28 board feet of lumber. Towson expects that 2,000 and 1,850 book case

s will be built in June and July, respectively. Towson keeps lumber on hand at 35% 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.)
Business
1 answer:
MissTica3 years ago
4 0

Answer :

Number board feet of lumber = 54,530

Explanation :

As per the data given in the question,

Number board feet of lumber to buy in June = Number  of units to be produced + Ending inventory required - Opening inventory  needed

= (2,000 cases × 28 board feet of lumber per case) + (1,850 cases × 35% × 28 board feet to lumber per case) - (2,000 cases × 35% × 28 board feet of lumber per case)

=56,000 board feet + 18,130 board feet - 19,600 board feet

= 54,530 board feet of lumber

We simply applied the above formula

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