Case Study Catawba Industrial Company

2. It can be determined that it will take approximately 20,126 hours at a cost of $20,121.71, with the given labor rate of $1.08 per hour, for the 4 month production run, with the breakdown of each month as below:

In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated?

Catherine Pang presented her estimates on the new service line. She predicts that the first batch will take 1,000 labor hours to produce the first units of

Response: Job sizes range from 500 pieces to 150,000 pieces. Frequency is daily, weekly, monthly, quarterly, etc. Delivery time to postal patron is one (1) to five

Selling, general and administrative expenses were assumed to stay a constant 8.36% of sales to align with 2009 figures. The one time advertising outflow in 2011 and initial purchase of the plant and

Only in the stitching section there are inventories between different groups’ work. If the company still keeps each batch’s size as 100 pairs, the average work load for each worker in work group 1 now is 25 pairs, but in work group 2 is only 20 pairs which means that there will be 5 pairs of shoes as inventories from work shop 1 to work shop 2 in the stitching section.

4000bbl/day x 1 yr/365 days x 5.8x106 Btu/ 1bbl x 1 gal gas/1.24 x 105 Btu = 6.83 x 107 gal gas

The objective of this message is to appraise testimony refined by PowerCo's economists in order to establish the apparent profit or loss which could result from developing a cutting edge power generator. Considering the ever increasing demand for electricity, the present power plant can effectively supply electricity in the next 10-12 years. Therefore, a proposal has been put forward and this report will be aimed at determining whether the novel power generator is supposed to be developed.

parts. On a “good day” level of production, Hilcrest will reject 65 tubes per shift, resulting 650

The total number of units that has to be produced is 200 in which 100 should be produced during the first 12 months. The remaining 100 units would be produced and delivered in two bits of 5o units each and would be produced at 3-motnth intervals.

3. What weekly production plan for standard and light weight compressors would result in the highest financial return for Catawba?

* Production capacity is 10,000 units a year however they hope to construct a $45 million facility with a capacity of

ii.       Production capacity = 480 / 0.5 = 960 units per day @ continuous 100% utilization

The job requires four months to complete, with 10, 12, 14 and 8 trucks needed in months 1 through 4, respectively.

| This fits our production system adequately. Since our assumed working cycle time is 6sec(=10 cycles/min) and it meets the requirement of 1300cars/day. On the other side, this is capital intensive but not as expensive as the first one.