The number of workers to be working and the way allocation should be made for the next five weeks. Linear programming: It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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E2-20 (Algo) Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follo (ignore any accounts that are not listed). During January, the company had the following transactions: a. Purchased $63,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number 201 Total Cost 202 Indirect materials $ 11,100 21,800 6,000 $ 38,900 c. Recorded factory payroll costs from labor time tickets that revealed the following: Job Number 201 202 Hours 101 392 Total Cost Factory supervision $ 2,600 10,200 4,700 $ 17,500 d. Applied overhead to production at a rate of $27.00 per direct labor hour for 493 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory…

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Chapter 4, Problem 111P

Summary Introduction

To determine: The number of workers to be working and the way allocation should be made for the next five weeks.

Linear programming:

It is a mathematical modeling procedure where a linear function is maximized or minimized subject to certain constraints. This method is widely useful in making a quantitative analysis which is essential for making important business decisions.

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E2-20 (Algo) Recording Manufacturing Costs [LO 2-3, 2-4, 2-5] Reyes Manufacturing Company uses a job order cost system. At the beginning of January, the company had one job in process 201) and one job completed but not yet sold (Job 200). Job 202 was started during January. Other select account balances follo (ignore any accounts that are not listed). During January, the company had the following transactions: a. Purchased $63,000 worth of materials on account. b. Recorded materials issued to production as follows: Job Number 201 Total Cost 202 Indirect materials $ 11,100 21,800 6,000 $ 38,900 c. Recorded factory payroll costs from labor time tickets that revealed the following: Job Number 201 202 Hours 101 392 Total Cost Factory supervision $ 2,600 10,200 4,700 $ 17,500 d. Applied overhead to production at a rate of $27.00 per direct labor hour for 493 actual direct labor hours. e. Recorded the following actual manufacturing overhead costs: Item Factory rent Depreciation Factory…

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