Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Giants Manufacturing has a current production capacity of 15,000 units per week assuming no overtime is worked. The production budget for the next six weeks

Giants Manufacturing has a current production capacity of 15,000 units per week assuming no overtime is worked. The production budget for the next six weeks is shown below.

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Budgeted unit sales

16,000

15,000

12,000

14,000

17,000

10,000

+

Desired ending inventory units

1,500

1,200

1,400

1,700

1,000

1,000

=

Units required

17,500

16,200

13,400

15,700

18,000

11,000

-

Beginning inventory units

2,500

1,500

1,200

1,400

1,700

1,000

=

Budgeted production units

15,000

14,700

12,200

14,300

16,300

10,000

Which of the following actions would not be an appropriate response to this budget information?

A) produce 12,800 units in Week 3, 15,000 units in Week 4, and 15,000 units in Week 5
B) produce 15,000 units in Week 5 and 11,300 units in Week 6
C) use overtime to produce 1,300 units in Week 5
D) outsource production of 1,300 units in Week 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What does it mean when two events are complements?

Answered: 1 week ago