A Bread-Making Factory Has the Production Process Shown in the Figure

question 147

Multiple Choice

A bread-making factory has the production process shown in the figure below. There are five operations in sequence. The product only needs to go through one of the parallel machines in each case where parallel machines exist. Assume 8 hours per day, 7 days per week, what is the weekly capacity of the process?

• A) 96 batches
• B) 112 batches
• C) 67 batches
• D) 56 batches
• E) 84 batches

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Definitions:

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods, minus the estimated costs of completion and necessary selling costs, used for inventory valuation and accounts receivable.

Inventory

The merchandise and supplies a company maintains with the end purpose of selling or manufacturing.

Periodic Inventory System

A method of inventory management where inventory levels and cost of goods sold are updated in the accounting records on a periodic basis, such as monthly or annually.