Question
Exercise 18.11 is an extension of Exercise 18.10. EXERCISE 18.11 The following information pertains to May activity in Accessory World?s Coating Department: Cost data: Total
Exercise 18.11 is an extension of Exercise 18.10. EXERCISE 18.11 The following information pertains to May activity in Accessory World?s Coating Department: Cost data: Total cost of beginning inventory on May 1 . . . . . . . . . . . . . . . . . . . . . . . . . $45,300 Direct materials costs incurred in May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,925 Conversion costs incurred in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,525 Cut sets transferred in during May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? Physical units data: Units in process, May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 sets Units started in May . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? sets Units in process, May 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 sets Percentage of completion data: Direct materials, May 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60% Conversion, May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Cut sets transferred in, May 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? Direct materials, May 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70% Conversion, May 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Cut sets transferred in, May 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? a. Compute how many cut mat sets were started in the Coating Department during May. b. Prepare a schedule showing: (1) the number of mat sets transferred out of the Coating Department in May, and (2) the number of mat sets started and completed by the Coating Department in May. c. Compute the equivalent units of input resources for the Coating Department in May. d. Compute the cost per equivalent unit of input resource for the Coating Department in May. e. Prepare the summary journal entry required to transfer the cost of finished mat sets from the Coating Department?s Work in Process Inventory to the company?s Finished Goods Inventory in May. f. Compute the total cost assigned to the Coating Department?s ending inventory in process on May 31. Exercise 19.2 Assume you have just been hired as the management accountant in charge of providing your firm?s managers with product cost information. Identify the activities you might undertake for the following four value chain components: a. Research and development b. Production c. Marketing d. Customer service Exercise 9.1A Castner Corporation is considering implementation of a JIT inventory system. The company?s industrial engineer recently conducted a study to determine the average number of days spent in each activity of the production process. The following table summarizes her findings: Production Activity Number of Days Inspecting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Storing materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Moving materials into production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Setting up production equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Cutting materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Bending materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Assembling finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Painting finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Instructions a. Identify Castner?s value-added production activities. b. Identify Castner?s non-value-added production activities. c. Calculate Castner?s total cycle time. d. Determine Castner?s manufacturing efficiency ratio. e. Which of the above activities might be reduced or eliminated if Castner implemented a JIT system? f. What ethical issues might be related to eliminating some of the non-value-added activities?
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