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- QuestionByron Sports is a manufacturer of sportswear. It produces all of its products in one department using a process costing system.The information for the current month is as follows:Beginning work in process (30% complete as to conversion cost) 12,000 unitsUnits started 90,000 unitsUnits completed and transferred out ?Ending work in process (70% complete as to conversion) 8,000 unitsCosts:Beginning work-in-process direct materials $28,800Beginning work-in-process conversion $5,040Direct materials added during month $216,000Conversion costs incurred during the month $139,200Direct materials are added at the beginning of the process. Conversion costs are incurred uniformlythroughout the production process. Costing is handled on a FIFO basis Required:a. Prepare a production cost worksheet using 5 steps approach.b. Under what conditions would a process costing system be more appropriate than a job order costing system? Explain.1. Foxie Owl’s Besty Bagel shop makes fresh bagels. She has to buy raw materials fresh every day for selling on that day. She wants to know exactly how much should she spend on raw materials. Foxie did some analysis over the past month and came back with the following numbers: Daily demand was equally likely to be 200, 225, 250, 275, or 300 bagels. What should be the number of bagels on hand to satisfy a Fill Rate requirement of 96%, rounded to next integer value? Group of answer choices 300 275 286 263 2. Suppose that instead of a discrete demand distribution, Foxie’s shop determines that the daily demand for bagels is normally distributed, with a mean of 250 and a standard deviation of 35. Foxie still wants a Fill Rate of 98%. What is the appropriate level of on-hand inventory for Foxie’s shop? Group of answer choices 263 274 257 270IIn a job shop, effective capacity is only 69 percent of design capacity, and actual output is 76 percent of effective output. What design capacity would be needed to achieve an actual output of 13 jobs per week? What is its effective capacity? a. The Design Capacity needed to achieve the required actual job outputs =Blank 1 (round to whole number) b. The Effective Capacity needed to achieve the required actual job outputs = Blank 2 (round to whole number) Blank 1 Blank 2 Add your answer Add your answer
- 4. The Spencer Optics Company produces an inexpensive line of sunglasses. The manufacturing process consists of assembling two plastic lenses (produced by the firm's plastic molding depart- ment) into a finished frame (purchased from an outside supplier). The company is interested in using material requirements planning to schedule its operations and has asked you to prepare an example to illustrate the technique. The firm's sales manager has prepared a 10-week sales forecast for one of the more popular sunglasses (the Classic model) for your example. The forecast is 100 units per week. Spencer has customer orders of 110 units, 80 units, 50 units, and 20 units in weeks 1, 2, 3, and 4, respectively. The sunglasses are assembled in batches of 300 units. Presently, three such batches are sched- uled: one in week 2, one in week 5, and one in week 8. Complete the following time-phased record: Week hand 1 2 3 4 5 6 7 8 9 10 Classic Model On MPS Record Forecast Orders Projected available…The Donald Fertilizer Company produces industrial chemi-cal fertilizers. The projected manufacturing requirements (inthousands of gallons) for the next four quarters are 90, 60,90, and 140, respectively. A level workforce is desired, relyingonly on anticipation inventory as a supply option. Stock-outs and backorders are to be avoided, as are overtime andundertime.a. Determine the quarterly production rate required to meettotal demand for the year, and minimize the anticipationinventory that would be left over at the end of the year.Beginning inventory is 0.b. Specify the anticipation inventory that will be produced.c. Suppose that the requirements for the next four quartersare revised to 60, 90, 140, and 90, respectively. If total de-mand is the same, what level of production rate is needednow, using the same strategy as part (a)?Tuff-Rider, Inc., manufactures touring bikes and mountainbikes in a variety of frame sizes, colors, and component com-binations. Identical bicycles are produced in lots of 100. Theprojected demand, lot size, and time standards are shown inthe following table: Item Touring MountainDemand forecast 5,000 units/year 10,000 units/yearLot size 100 units 100 unitsStandard processing time .25 hour/unit .50 hour/unitStandard setup time 2 hours/lot 3 hours/lot The shop currently works 8 hours a day, 5 days a week,50 weeks a year. It operates five workstations, each producingone bicycle in the time shown in the table. The shop main-tains a 15 percent capacity cushion. How many workstationswill be required next year to meet expected demand withoutusing overtime and without decreasing the firm’s currentcapacity cushion?
- The management of Hartman Company is trying to determine the amount of each of two products to produce over the coming planning period. The following information concerns labor availability, labor utilization, and product profitability: Labor-Hours Required Department A B с (hours/unit) Product 1 Product 2 Hours Available Production 1.00 0.30 Profit contribution/unit $30.00 0.20 38.27 0.35 0.20 0.50 $15.00 (a) Develop a linear programming model of the Hartman Company problem. Solve the model to determine the optimal production quantities of products 1 and 2. If required, round your answer to two decimal places. Product 1 Product 2 69.77 M 95 72.09 38 50 (b) In computing the profit contribution per unit, management does not deduct labor costs because they are considered fixed for the upcoming planning period. However, suppose that overtime can be scheduled in some of the departments. Which departments would you recommend scheduling for overtime? Dept A What is the upper limit of what…The Ace Manufacturing Company has orders for three similar products. Orders (units) Product Min A s.t. B с 1 Three machines are available for the manufacturing operations. All three machines can produce all the products at the same production rate. However, due to varying defect percentages of each product on each machine, the unit costs of the products vary depending on the machine used. Machine capacities for the next week and the unit costs are shown below. Machine 2 3 LB A C B с 1 Product 112₂ 3 Machine 1 Capacity Machine 2 Capacity Machine 3 Capacity 2,200 Product A Orders Product C Orders 400 xij≥0 for all i, j. 1,400 Product B Orders Capacity (units) 1,500 1,500 Use the transportation model to develop the minimum cost production schedule for the products and machines. (a) Show the linear programming formulation. (Let XA1 be the number of units of product A produced by machine 1, X;; be the number of units of product i produced by machine j, etc.) 1,100 $1.00 $1.30 $1.10 1 $1.20…Manufacturing Aggregate Planning Manufacturers Inc. (MI) currently has a labor force of 10, which can produce 600 units per period. The labor cost is now $5000 per period per employee. The company has a long-standing rule that does not allow it to make use of any overtime. In addition, the product cannot be subcontracted, due to the specialized nature of the machinery that MI uses to produce it. As a result, MI can only increase/decrease production by hiring or laying off employees. The cost is $10000 to hire or lay off an employee. Inventory carrying costs are $200 per unit for any unsold items at the end of the period. The inventory level at the beginning of period 1 is 400 units. The forecast demand is 700 in period 1,600 in period 2,450 in period 3, 250 in period 4,500 in period 5, and 550 in period 6. a.) Compute the costs of the Chase Demand Strategy. b.) Compute the costs of the Level Strategy c.) Compare the costs of the two strategies. Which one is superior?
- A steel workshop of PT Mental Baja produces leaf springs for cars. theyhave a demand forecast for the next 6 months as anext:i. January 446 units (production time 20 days)ii. February 600 units (production time 18 days)iii. March 700 units (production time 20 days)iv. April 900 units (production time 20 days)v. May 650 units (production time 20 days)vi. June 550 units (production time 20 days) The following are some important information to be the basis for doingcalculation of production costs as follows:i. Inventory cost $4 per unitii. Subcontractor fee $15 per unitiii. Workers cost $10 per hour or $80 per dayiv. Production time per unit 1.6 hours Tasks and questionsa. Assuming that the number of units that can be produced is 35 units per dayand 1 person can make 7 units, make an estimated cost by usingConstant Workforce approach. b. Assuming that internal processing is carried out usingcapacitors of daily production are the lowest for 6 months and constant,calculate estimated…A manufacturing company makes two types of water skis, a trick ski and a slalom ski. The relevant manufacturing data are given in the table. Labor-Hours per Ski Department Fabricating Finishing Answer parts (A), (B), and (C) below. Trick Ski 12 1 Slalom Ski 8 1 Maximum Labor-Hours Available per Day 480 48 (A) If the profit on a trick ski is $40 and the profit on a slalom ski is $30, how many of each type of ski should be manufactured each day to realize a maximum profit? What is the maximum profit? The maximum profit is $ The maximum occurs when trick skis and slalom skis are produced.Accompany makes two products (1&2) each product requires time on two machines (A&B). specification for each product is as follows. Product1 product2 Processing time on Machine A (hrs/unit) 2 2 Processing time on Machine B (hrs/unit) 1 2 Material and labour cost ( ksh/unit) 14 15 Selling price (ksh/unit) 16 18 Maximum possible sale (units) 130 150 The amount of time available on machine A is 360 hours and on machine B is 260 hours. Formulate the linear programme which, when…