Solved

A Firm Has 4 Plants That Produce Widgets The Firm Needs to Satisfy All Demand Each Day, but B

question 58

Multiple Choice

A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 100 widgets per day. Plant D can produce 50 widgets per day. Each day, the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 75 units per day, customer 2 requires 100 units per day, and customer 3 requires 175 units per day. The shipping costs for each possible route are shown in the table below:
$\begin{array}{c}Shipping~ Costs&&&Customer\\per~unit~Plant&&1&2&3\\\mathrm{A} && \$ 25 & \$ 35 & \$ 15 \\\mathrm{~B} && \$ 20 & \$ 30 & \$ 40 \\\mathrm{C} && \$ 40 & \$ 35 & \$ 20 \\\mathrm{D} && \$ 15 & \$ 20 & \$ 25\end{array}$
The firm needs to satisfy all demand each day, but would like to minimize the total costs.
The firm's problem falls within which classification?

Understand how beginning work in process inventory affects process costing calculations.

Apply process costing principles to different departments within a manufacturing operation.

Identify and calculate costs associated with units transferred out and units in ending inventory.

Understand the addition of materials and conversion costs at different stages of the production process.

Definitions:

Accepted Standards

Guidelines or criteria widely recognized and followed by an industry or community as a basis for quality, safety, or functionality.

Documentation

The process of creating, maintaining, and preserving records and details of various activities, transactions, or processes.

Shortness of Breath

A sensation of difficulty breathing or a feeling of not getting enough air, a symptom of various medical conditions ranging from mild to serious.

Initial Interview

The first formal conversation between a candidate and a potential employer or interviewer, focused on assessing qualifications for a position.