Question

In: Accounting

Shoney Video Concepts produces a line of videodisc players to be linked to personal computers for...

Shoney Video Concepts produces a line of videodisc players to be linked to personal computers for video games. Videodiscs have much faster access time than tape. With such a computer/video link, the game becomes a very realistic experience. In a simple driving game where the joystick steers the vehicle, for example, rather than seeing computer graphics on the screen, the player is actually viewing a segment of a videodisc shot from a real moving vehicle. Depending on the action of the player (hitting a guard rail, for example), the disc moves virtually instantaneously to that segment and the player becomes part of an actual accident of real vehicles (staged, of course).

Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the lowest-cost alternative. The forecast for the next 12 months is

MONTH	FORECAST DEMAND	MONTH	FORECAST DEMAND
January	520	July	120
February	720	August	120
March	820	September	220
April	520	October	620
May	320	November	720
June	220	December	820

Manufacturing cost is $230 per set, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of sets results in lost sales and is estimated to cost an overall $25 per unit short.

The inventory on hand at the beginning of the planning period is 230 units. Ten labor hours are required per videodisc player. The workday is eight hours.

Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total annual production capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand and annual capacity). (Leave no cells blank - be certain to enter "0" wherever required. Indicate monthly shortages using a negative ending inventory level. Round up the "number of workers" to the next whole number and round down your "monthly production rates" to the next lower whole number.)

January

February

March

April

May

June

July

August

September

October

November

December

Total

Forecast

520

720

820

520

320

220

120

220

620

720

820

Beginning inventory

Available production

Ending inventory

Costs

Total

Lost sales

Inventory

Total

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Select any product that you are familiar with such as computers, jeans or personal MP3 players....

Select any product that you are familiar with such as computers, jeans or personal MP3 players. Once the item is selected, then you must undertake research into the specific items : target market and market segmentation. Your answer must contain information as to: How large is the target market, what is the future growth potential of this target market, how do/does the marketer reach this target market and so on? Also, mention in your answer that how will you re-position...

Topic: You are an employee of an U.S. firm that produces personal computers in China and...

Topic: You are an employee of an U.S. firm that produces personal computers in China and then exports them to the United States and other countries for sale. The personal computers were originally produced in China to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were India and Mexico. The U.S. government decides to impose punitive 100 percent ad valorem tariffs on imports of computers from China to punish the...

5. You are an employee of a U.S. firm that produces personal computers in Thailand and...

5. You are an employee of a U.S. firm that produces personal computers in Thailand and then exports them to the U.S. and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at the time were Malaysia and Honk Kong. The U.S. government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country...

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31,...

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the company’s fiscal year-end. The company uses the perpetual inventory system. Account Title Debits Credits Cash 23,000 Accounts receivable 32,200 Supplies 0 Prepaid rent 0 Inventory 62,000 Office equipment 83,700 Accumulated depreciation—office equipment 9,700 Accounts payable 25,800 Salaries and wages payable 2,700 Note payable 27,000 Common stock 77,000 Retained earnings 26,850 Sales revenue 177,000 Cost of goods sold...

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31,...

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the company’s fiscal year-end. The company uses the perpetual inventory system. Debits Cash 88,420 Accounts receivable 27,000 Supplies 0 Prepaid rent 0 Inventory 66,000 Office equipment 83,000 Cost of goods sold 132,500 Interest expense 0 Salaries and wage expense 53,950 Rent expense 17,600 Supplies expense 2,320 Utility expense 6,100 Credits Accumulated depreciation—office equipment 10,790 Accounts payable 35,400 Salaries...

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31,...

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the company’s fiscal year-end. The company uses the perpetual inventory system. Account Title Debits Credits Cash 80,380 Accounts receivable 25,500 Supplies 0 Prepaid rent 0 Inventory 61,500 Office equipment 77,000 Accumulated depreciation—office equipment 10,010 Accounts payable 32,100 Salaries and wages payable 4,200 Note payable 30,300 Common stock 105,000 Retained earnings 18,050 Sales revenue 240,000 Cost of goods sold...

Video Concepts, Inc. (VCI) manufactures a line of digital cameras that are distributed to large retailers....

Video Concepts, Inc. (VCI) manufactures a line of digital cameras that are distributed to large retailers. The line consists of three models. The following data are available regarding the models: Model Selling Price per unit Variable Cost per unit Demand/Year (units) Model LX1 $175 $100 2,000 Model LX2 $250 $125 1,000 Model LX3 $300 $140 500 VCI is considering the addition of the fourth model to its line (LX4). The model would be sold to retailers for $375. The variable...

Video Concepts, Inc. (VCI) manufactures a line of videocassette recorders (VCRs) that are distributed to large...

Video Concepts, Inc. (VCI) manufactures a line of videocassette recorders (VCRs) that are distributed to large retailers. The line consists of three models of VCRs. The following data are available regarding the models: Model VCR Selling Price per Unit Variable Cost per Unit Demand/Year (units) Model LX1 $175 $100 2,000 Model LX2 $250 $125 1,000 Model LX3 $300 $140 500 VCI is considering the addition of a fourth model to its line of VCRs: This model would be sold to...

Compucat is a Canadian manufacturing company that produces inexpensive personal and laptop computers. The company has...

Compucat is a Canadian manufacturing company that produces inexpensive personal and laptop computers. The company has been generating progressively more of its sales from foreign markets. During 2016, the company started purchasing most of its components from a supplier in Germany. To deal with the uncertainty associated with foreign exchange fluctuations, all of Compucat's foreign currency denominated receivables and payables are hedged with contracts with the company's bank. Compucat's year-end is on December 31. The following transactions took place in...

The Austin, Texas plant of Computer Products produces disk units for personal and small business computers....

The Austin, Texas plant of Computer Products produces disk units for personal and small business computers. Gerald Knox, the plant’s production planning director, is looking over next year’s sales forecasts for these products and will be developing an aggregate capacity plan for the plant. The quarterly sales forecasts for the disk units are as follows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2,610 2,520 2,520 2,700 Ample machine capacity exists to produce the forecast. Each disk unit takes an...

Subjects