Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.12 3 4 576 79 82 8255YearForecast demandCurrently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available forscheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutesto produce.a. What is the effective capacity of the factory? Round your answer down to the nearest whole number.units/yearb. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity.Round your answers to the nearest whole number.YearExtra capacity needed (units)c. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearestwhole number.YearAdditional machines needed112233455

It is the capacity available for a company to produce the units according to the demand available…

Answered: Hickory Manufacturing Company forecasts…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pridgeon Corporation plans to sell 23,000 units during August. If the company has 8,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units must be produced during the month? O 24,000 O 22,000 O 32,000 O 31,000
Answer all subparts a,b,c,d,e,f.if answered within 30mins,it would be great Accounting ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situation
Suppose plant capacity were only 13,000 pieces instead of 15,000 pieces each month. Thespecial order must either be taken in full or be rejected completely. Should Carilla accept thespecial order? Show your calculations
CBC Inc is currently operating at 80% capacity. Its machine and factory has a maximum production capacity of 100,000 units per month. What is the total maximum number of units to be accepted from a special order before the Company will incur opportunity cost from the contribution margin of regular customers?
Alpha retail store predicts an annual demand of 4920 kgs of a food product. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it. The annual holding cost is 20% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in days) between orders? Round-up to the nearest integer O a. 185 O b. 115 O c. 100 Od. None is correct O e. 111
Show the solution in good accounting form
A firm orders on average 400 wheels each month. Demand is normally distributed with standard deviation of the monthly demand being 20 wheels. The ordering cost is $8 per order. The cost to buy one wheel is $4 per wheel. Annual carrying costs are 50% of unit cost. The supplier lead time is 2 operating days. The firm operates 240 days per year, in other word, the firm operates 20 days each month. Each order is received from the supplier in a single delivery. There are no quantity discounts. Write your answer and then Round your answer up to the nearest number for future calculation. (e.g 9.6 => 10). Please clearly write down the formulation and calculation for your answers. Note: Here I make the time measures bolded for you to make you pay the attention to their differences. Please notice the difference in times measure units, so that you do not make mistake by doing calculations with different time measures. You need to convert the data to the same time measures before doing any…
Balcom Enterprises is planning to introduce a new product that will sell for $120 a unit. Manufacturing cost estimates for 28,000 units for the first year of production are: Direct materials $1,372,000. Direct labor $1,008,000 (based on $18 per hour × 56,000 hours). Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Factory overhead costs Independent variable Direct labor hours Intercept $ 136,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.959 R2 0.846 Based on this information, how much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)? Multiple Choice $72 $92 $95 $77
Nakuru Manufacturing limited operates at normal capacity. It manufactures 800,000units of a product per year. The unit cost manufacturing at normal capacity is as follows:Kshs.Direct materials 20.00Direct labour 7.00Variable overheads 5.00Fixed overheads 10.00Selling price 50.00During the next three months. only 40,000 units can be produced and sold. Managementplans to shut down the factory, estimating that the manufacturing overhead can bereduced to Kshs.296,000 for the quarter when the factory is not operating; the fixedoverhead costs are incurred at uniform rate throughout the year. Additional costs offactory shutdown for 3 months are estimates at Kshs.56,OOO.Examine if the factory should shut down for 3 months with relevant calculations.
GreenThumb Organic Fertilizer Company plans to sell 210,000 units of finished product in July and anticipates a growth rate in sales of 3 percent per month. The desired monthly ending inventory in units of finished product is 85 percent of the next month's estimated sales. There are 178,500 finished units in inventory on June 30. Each unit of finished product requires 4 pounds of raw material at a cost of $1.25 per pound. There are 840,000 pounds of raw material in inventory on June 30. Required: 1. Compute the company's total required production in units of finished product for the entire three-month period ending September 30. Note: Round all intermediate calculations and your final answer to the nearest unit. 2. Independent of your answer to requirement 1, assume the company plans to produce 700,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in…

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