Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. Thesedevices have very fast access and large storage capacity.Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level isto be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause anyadverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not thelowest-cost alternative. The forecast for the next 12 months isMONTHJanuaryFebruaryMarchAprilMayJuneFORECASTDEMAND605805905605405305MONTHJulyAugustSeptemberOctoberNovemberDecemberFORECASTDEMAND205205305705805905Manufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per monthand is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $23per unit short.The inventory on hand at the beginning of the planning period is 220 units. Twelve labor hours are required per DVD player. Theworkday is nine hours.Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days eachmonth except July, when the plant closes down for three weeks' vacation (leaving seven working days). Assume that total annualproduction capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand andannual capacity). (Leave no cells blank - be certain to enter "0" wherever required. Indicate monthly shortages using a negativeending inventory level. Round up the "number of workers" to the next whole number and round down your monthly "Availableproduction" values to the nearest whole number.) ForecastBeginning inventoryAvailable productionEnding inventoryLost salesInventoryTotalCostsJanuary February March April May405605805905605June July August305 205205September October November December Total305705805905Total

Manufacturing Cost -The costs associated with acquiring ingredients and turning them into finished…

vices have very fast access and large storage capacity. oney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause a verse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the west-cost alternative. The forecast for the next 12 months is MONTH anuary ebruary arch pril ay une FORECAST DEMAND 605 805 905 605 405 305 MONTH July August September October November December FORECAST DEMAND 205 205 305 705 805 905 nufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per mont dis assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $ unit short. e inventory on hand at the beginning of the planning period is 220 units. Twelve labor hours are required per DVD player. The kday is nine hours.

vices have very fast access and large storage capacity. oney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause a verse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the west-cost alternative. The forecast for the next 12 months is MONTH anuary ebruary arch pril ay une FORECAST DEMAND 605 805 905 605 405 305 MONTH July August September October November December FORECAST DEMAND 205 205 305 705 805 905 nufacturing cost is $220 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per mont dis assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $ unit short. e inventory on hand at the beginning of the planning period is 220 units. Twelve labor hours are required per DVD player. The kday is nine hours.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 14P

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