The swift Mountain Ski Company manufactures skis in the finishing and assembly process. Skis are manufactured in 30-ski batch sizes. The finishing time is 14 minutes per ski. The assembly time is 10 minutes per ski. It takes 8 minutes to move a batch of skis from finishing to assembly.

Instructions:

a.Compute the value-added, non-value-added, and total lead time of this process.

b.Compute the value-added ratio.Round to one decimal place.

Ejercicio #1: Lean Accounting

Right Now Video Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell.The budgeted conversion cost for the year is $420,000 for 2,000 production hours.Each unit requires 9 minutes of cell process time. During July, 1,100 DVR players are manufactured in the cell. The materials cost per unit is $135. The following summary transactions took place during July:

1.Materials are purchased for July production

2.Conversion costs were applied to production

3.1,100 DVR players are assembled and placed in finished goods

4.1,060 DVR players are sold for $335 per unit

Instructions:

a)Determine the budgeted cell conversion costs per hour

b)Determine the budgeted cell conversion costs per unit

Journalize the summary transactions (1) -(4) for July