requirements over a typical six-month period are as 4 6. Requirement 750 800 750 600 900 700 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply:Wages - $2,000/worker/month Hiring cost - $200/worker Layoff Cost - $250/worker Inventory holding cost $1/unit/month Back ordering cost - $2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. 500 O 1100 O 450 O 900 3.

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter16: Job Order Costing
Section: Chapter Questions
Problem 4CMA: Patterson Corporation expects to incur 70,000 of factory overhead and 60,000 of general and...
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requirements over a typical six-month periöd are as
1
2
4
6
Requirement 750
700
800
750
600
900
Produce
# of
Employees
Hire
Layoff
Beginning
Inventory
Ending
Inventory
Average
Inventory
The current workforce level is 4 workers.
Production rate is 150/worker/month.
The following costs apply:Wages = $2,000/worker/month
Hiring cost = $200/worker
Layoff Cost = $250/worker
Inventory holding cost = $1/unit/month
Back ordering cost - $2/unit/month
If a Level strategy is used, what is the total inventory cost, which
includes inventory holding cost and back ordering cost? First, you
need to determine the quantity to produce every period.
O S00
O 1100
O 450
O 900
3.
Transcribed Image Text:requirements over a typical six-month periöd are as 1 2 4 6 Requirement 750 700 800 750 600 900 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply:Wages = $2,000/worker/month Hiring cost = $200/worker Layoff Cost = $250/worker Inventory holding cost = $1/unit/month Back ordering cost - $2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. O S00 O 1100 O 450 O 900 3.
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