80.2K

Verified Solution

Link Copied!

Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in $40-$jean batch sizes. The cutting time is $5$ minutes per jean. The sewing time is $20$ minutes per jean. It takes $2$ minutes to move a batch of jeans from cutting to sewing.

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

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

Which of the following are features of a lean manufacturing system?

Smaller batch sizes

Centralized maintenance areas

Employee involvement

Less wasted movement of material and people

The annual budgeted conversion costs for a lean cell are $$180,000$ for $1,000$ production hours. Each unit produced by the cell requires $20$ minutes of cell process time. During the month, $600$ units are manufactured in the cell. The estimated materials costs are $$30$ per unit. Journalize the following entries for the month:

Materials are purchased to produce $500$ units.

Conversion costs are applied to $600$ units of production.

The cell completes $450$ units, which are placed into finished goods.

Roen Company incurred an activity cost of $$105,600$ for inspecting $40,000$ units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting $40,000$ units of production, the inspection activity was limited to a random selection of $5,000$ units out of the $40,000$ units of production. Determine the inspection activity cost per unit on $40,000$ units of total production both before and after the improvement.

Answer & Explanation Solved by verified expert

See Answer