Alpha manufactures chairs, and each requires 4 board feet of lumber. Alpha expec

Question

Alpha manufactures chairs, and each requires 4 board feet of lumber. Alpha expects that 1,500 and 1,700 chairs will be built in April and May, respectively. Alpha keeps lumber on hand at 40% of the next month's production needs. Use this information to determine number board feet of lumber that Alpha Company: (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units.)

            1. should buy in April

            2. have for desired March ending raw material inventory

Explanation / Answer

a Units to be built in April 1500 Feet per unit 4 Total board feet for production 6000 Add: Desired ending inventory 2720 Total board feet needed 8720 Less: Begining inventory 2400 Bord feet to be bought in April 6320 b Desired March ending raw material inventory=(6000*40%) = 2400

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