Problem 4) ABC Manufacturing manufactures one type of pontoon boat: Model A. The beginninginventory of the pontoon boats is 1,200 units. Capacity is limited to the following number of boats eachmonth: 3,000. Demand for the pontoon boats for the next 6 months is: 1,500 in Month 1, 1,800 in Month2, 3,000 in Month 3, 1,800 in Month 4, 1,700 in Month 5, and 1,600 in Month 6. The production cost perunit in Months 1, 2, & 3= $6,420. The production cost per unit in Months 4, 5, & 6= $3,200. Holdingcosts are assessed on Ending Inventory each month. The holding cost per unit in Months 1, 2, & 3 =$1,310. The holding cost per unit in Months 4, 5, & 6 = $950. Management has specified that the endinginventory in Month 2 must be at least 408 units and that no backorders are allowed in any period.Formulate a linear programming model to minimize total cost over the 6 months.Use the headings listed below in your model formulation:Decision Variables:Objective Function:Constraints:Additional Work for Constraints:

Decision Variables: Let, X1 = Production for the Pontoon Boat in Month 1 X2 = Production for the…

Answered: Problem 4) ABC Manufacturing…

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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Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,200 units (solar panels) in July and 4,600 units in August. Each unit requires 4 pounds of direct materials, which cost $6 per pound. The company’s policy is to maintain direct materials inventory equal to 40% of the next month’s direct materials requirement. As of June 30, the company has 6,720 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July. MIAMI SOLAR Direct Materials Budget For Month Ended July 31 Budget production (units) 4,200 Materials needed for production (lbs.) Total materials requirements (lbs.) Materials to be purchased (lbs.) Budgeted cost of direct materials purchases
The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July Number of foam cushions to be produced in August Number of foam cushions to be produced in September Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 30% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August? OA. 20,800 OB. 15,400 13,000 11,000 9,000 OC. 27,400 OD. 28,600
Required information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,400 snowboards and 7,400 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 164,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,900 snowboards and 5,400 pounds of carbon fiber in inventory. Carbon fiber costs $13 per pound. Each snowboard requires 0.5 hour of direct labor at $18 per hour. Variable overhead is budgeted at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,796,000 for the quarter. 4. Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Third Quarter Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead
The production planning team of Red Velvet Inc showed that each product requires 3 units of raw materials costing 10 each. The inventory manager requires that 20% of the total raw materials purchased during the month must be kept as monthly ending inventory to avoid shortage The marketing team estimates that the demand of the product is 10,000 units in September 12,000 units in October, and 15,000 units in November. The starting inventory in September for the raw materials is 7,200 units. 1. What is the total units of raw materials needed to be purchased on the month of September to meet the requirements of different departments? 2. What is the total units of raw materials needed for the production of October estimated demand?
Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: February March. 14,000 units 15,500 units April.. 11,900 units May June. 12,600 units 14,500 units The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0.80 per yard. The company wants to prepare a Direct Materials Purchases Budget. The total cost of Material A to be purchased in February is: $45,200 O $34,320 O $42,900 O $39.440
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One Device makes universal remote controls and expects to sell 654 units in January, 952 in February, 907 in March, 648 in April, and 957 in May. The required ending inventory is 13% of the next month’s sales. Calculate the total production for the first four months (January, February, March and April). Round to the nearest hundreth, two decimal places.
Miami Solar...
Olympia Productions Incorporated makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for March is 2,000 medallions. Estimated beginning inventories and desired ending inventories for March are as follows: (Assume 18 inches = 0.5 yards) Estimated Beginning Medallions Ribbon (yards) Inventory 1,100 70 Desired Ending Inventory 750 23 Required: a. Calculate the number of medallions to be produced in March. b. Calculate the number of yards of ribbon to be purchased in March. a. Number of medallions produced b. Number of yards of ribbon purchased
Sacco Industries manufactures a popular interactive stuffed animal for children that requires three computer chips inside each toy. The company pays $2 for each computer chip. To help to guard against stockouts of the computer chip, Sacco Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: E (Click the icon to view the production schedule.) Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget. ..... Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget. Sacco Industries Direct Materials Budget - X For the Months of January through March Data table January February March Quarter Units to be produced 5,600 4,800 4,200 14,600 Stuffed animals to be…

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