Winton Inc Has 12,000 Machine Hours Available Each Month

question 46

Multiple Choice

Winton Inc has 12,000 machine hours available each month.The following information on the company's four products is available: If market demand exceeds the available capacity,in what sequence should orders be filled to maximize the company's profits?

• A)Product W first,product X second,product Z third,and product Y last.
• B)Product Z first,product W second,product X third,and product Y last.
• C)Product X first,product W second,product Y third,and product Z last.
• D)Product X first,product Z second,product Y third,and product W last.

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computer systems.

Cost of Goods Sold

Costs directly incurred from the production of goods a company offers for sale, including labor and material costs.

Average Cost Formulas

A method in inventory valuation that calculates the cost of goods sold based on the average cost of all similar items in inventory.

Physical Flow

The tracking of physical units as they move through the production process.