The Wiethoff Company Has a Contract to Produce 10,000 Garden

question 76

Short Answer

The Wiethoff Company has a contract to produce 10,000 garden hoses for a customer. Wiethoff has four different machines that can produce this kind of hose. Because these machines are from different manufacturers and use differing technologies, their specifications are not the same.
$$\begin{array} { c c c c } \text { Machine } & \begin{array} { c } \text { Fixed Cost to Setup } \\\text { Production Run }\end{array} & \begin{array} { c } \text { Variable } \\\text { Cost per Hose }\end{array} & \text { Capacity } \\\hline 1 & 750 & 1.25 & 6000 \\2 & 500 & 1.50 & 7500 \\3 & 1000 & 1.00 & 4000 \\4 & 300 & 2.00 & 5000 \\\hline\end{array}$$
-Write a constraint that will ensure that Weithoff purchases exactly two machines.

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Definitions:

Weighted-Average Inventory Method

An inventory costing method that assigns a cost to inventory and cost of goods sold based on the average cost of all similar items in inventory.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into full units of output for reporting purposes.

Work in Process Inventory

Items that are partway through their manufacturing process but have not yet reached their final form.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, measured in terms of the amount of finished goods those partial items represent.