Decisions for Quarter One and Quarterly Business Review

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Content

TO:

Staff FROM:

Stall Brick (Manufacturing Manager)

Planning Information – Inventory & Labor

INVENTORY & COST WORKSHEET QTR 4 - 2020

RAW MATERIAL INVENTORY Units Value Value/Unit Beginning Inventory 414 $35,645 $86.10 + Shipments 1000 $86,100 $86.10 = Available for Production 1414 $121,745 $86.10 - Used for Production 1166 $100,393 $86.10 = Ending Inventory 248 $21,353 $86.10

Used for Production Value = (Production Units/Available Units) X Available Value

FINISHED GOODS INVENTORY Units Labor Material Total Beginning Inventory 229 $41,121 $19,717 $60,838 + Production 1166 $153,720 $100,393 $254,113 = Available for Sale 1395 $194,841 $120,110 $314,951 - Sales 829 $71,377 $187,164 $187,164 = Ending Inventory 566 $79,054 $48,733 $127,787

Production Labor = (Number of People) x (Labor Rate per Day) x (65 Working Days/Quarter) Production Material = Material Used for Production from Material Inventory Calculation Sales Labor = (Sales Units/Available Units) x (Available Labor) Sales Material = (Sales Units/Available Units) x (Available Material)

LABOR REQUIRED FOR PRODUCTION Prepared For Hisco Quarter 4 - 2020

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1.49 = 100 x 1.28 / 85.4 Required Labor/Unit = 100 x (Planned Time) / (Effectiveness)

1737 = 1.49 x 1166

Labor Days Needed* = (Req Labor/Unit) x (Desired

Production)*

27 = 1737 / 65

Number of People

Needed = (Labor Days Needed) / (65 Working

Days/Quarter)

0.0% = 100 x ( 27 - 27 ) / ( 27 ) % Excess Headcount* = 100 x ( # on Payroll- # Needed ) / ( # Needed ) * Note: This calculation does not take into account time needed for warranty repairs

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