Level production strategy is utilized to prepare the aggregate plan. Based on below Apr May Units/worker/month 500 Current Demand (units) 4000 6000 5 Begin workforce (workers) Shortage cost ($ per unit) Inventory 200 1.5 $1950 $1480 $2250 $3750

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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estion 13
Level production strategy is utilized to prepare the aggregate plan. Based on below data, what is the marginal stock-out cost in April?
Apr May
Units/worker/month 500
Current
Demand
(units)
4000 6000 workforce(workers) 5
Begin
Shortage cost ($
per unit)
Inventory 200
1.5
O$1950
O$1480
O $2250
$3750
Question 14
A factory plans its production based on level production strategy. What is the inventory cost for December given the below data?
Labor hours
Nov Dec required (hr/unit) 800
20
Current
workforce(workers)
22
Days/month
Demand
8
6500
Inventory cost per
(units)
4800
unit per month
$1.2
Begin
1000
Inventory
$3000
$2000
O $960
O $5760
Transcribed Image Text:estion 13 Level production strategy is utilized to prepare the aggregate plan. Based on below data, what is the marginal stock-out cost in April? Apr May Units/worker/month 500 Current Demand (units) 4000 6000 workforce(workers) 5 Begin Shortage cost ($ per unit) Inventory 200 1.5 O$1950 O$1480 O $2250 $3750 Question 14 A factory plans its production based on level production strategy. What is the inventory cost for December given the below data? Labor hours Nov Dec required (hr/unit) 800 20 Current workforce(workers) 22 Days/month Demand 8 6500 Inventory cost per (units) 4800 unit per month $1.2 Begin 1000 Inventory $3000 $2000 O $960 O $5760
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