Bioway Inc., a manufacturer of medical supplies, uses aggregate planning to set labor and inventory levels for the year. While a variety of items are produced, a standard kit composed of basic supplies is used for planning purposes. Demand varies with seasonal illnesses and the quarterly ordering policies of hospitals. The average worker at Bioway can produce 1,000 kits a month as cost of $9 per kit during regular production hours and $10 a kit during overtime production. Completed kits can also be purchased from outside suppliers at $12 each. Inventory carrying costs are $2 per kit per month. Overtime is limited to regular production, but subcontracting is unlimited. Due to high quality standards and extensive training, hiring, and firing costs are $1500 per worker. Bioway currently employs 25 workers. Given the demand forecast below, develop a six-month aggregate production plan for Bioway using (a) chase demand and (b) a mixed strategy where the current workforce is kept for April through August, and supplemented with overtime and subcontracting as needed.

For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, component, or accounting principle that is applied (if you agree) or violated (if you disagree).wagner corporation adjusted the valuation of all assets and liabilities to reflect changes in the purchasing power of the dollar. spooner oil company changed its method of accounting for oil and gas exploration costs from successful efforts to full cost. no mention of the change was included in the financial statements. the change had a material effect on spooner's financial statements. cypress manufacturing company purchased machinery having a five-year life. the cost of the machinery is being expensed over the life of the machinery. rudeen corporation purchased equipment for $180,000 at a liquidation sale of a competitor. because the equipment was worth $230,000, rudeen valued the equipment in its subsequent balance sheet at $230,000.davis bicycle company received a large order for the sale of 1,000 bicycles at $100 each. the customer paid davis the entire amount of $100,000 on march 15. however, davis did not record any revenue until april 17, the date the bicycles were delivered to the customer. gigantic corporation purchased two small calculators at a cost of $32.00. the cost of the calculators was expensed even though they had a three-year estimated useful life. esquire company provides financial statements to external users every three years.