Isaacson Dental Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 50 units. The processtime for each step is as follows:Process Step 1Process Step 2Process Step 3Process Step 46 minutes12 minutes9 minutes3 minutesThe time required to move each batch between steps is 6 minutes. In addition, the time to move raw materials to Process Step 1 is also 6 minutes, and the time to move completed units fromProcess Step 4 to finished goods inventory is 6 minutes.The new lean layout will allow the company to reduce the batch sizes from 50 units to 2 units. The time required to move each batch between steps and the inventory locations will be reduced to 1minute. The processing time in each step will stay the same.Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (a) present and (b) proposed production approaches. If required, round percentages toone decimal place.Present Approach Proposed ApproachValue-added time30 min30minNon-value-added time30 X min5 X minTotal lead time60 X min35 X minValue-added ratio (as a percent)50.0 X %85.7 X %

For Present ApproachFor Proposed ApproachProcess time (value adding) = 30 minutesProcess time (value…

Answered: Isaacson Dental Inc. is considering a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Click the icon to view the assembly department data.) (Click the icon to view the total costs assigned under the weighted-average method.) Required Begin by calculating the physical units and equivalent units. (For amounts with a 0 balance, make sure to enter" 0 " in the appropriate cell.)
Lead Time iSounds Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 20 printed circuit boards. Each board requires 5 minutes of board assembly time. After each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 10 minutes to complete. The final assembly for each stereo unit requires 16 minutes and is also done in batches of 20 units. A batch of 20 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 25…
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Cycle Time, Velocity, Product Costing Mulhall, Inc., has a JIT system in place. Each manufacturing cell is dedicated to the production of a single product or major subassembly. One cell, dedicated to the production of mopeds, has four operations: machining, finishing, assembly, and qualifying (testing). The machining process is automated, using computers. In this process, the model’s frame and engine are constructed. In finishing, the frame is sandblasted, buffed, and painted. In assembly, the frame and engine are assembled. Finally, each model is tested to ensure operational capability. For the coming year, the moped cell has the following budgeted costs and cell time (both at theoretical capacity): Budgeted conversion costs $5,541,120 Budgeted materials $18,668,000 Cell time 35,520 Theoretical output 17,760 models During the year, the following actual results were obtained: Actual conversion costs $5,541,120 Actual materials $4,009,000 Actual cell time…
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Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards. Each board requires 4 minutes of board assembly time. After each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 12 minutes to complete. The final assembly for each stereo unit requires 19 minutes and is also done in batches of 50 units. A batch of 50 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The…

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