Lead Time Pockets Inc. manufactures cargo pants in the cutting and sewing process. Cargo pants are manufactured in batches of 30. The cutting time is 4 minutes per unit. The sewing time is 12 minutes per unit. It takes 20 minutes to move a batch of jeans from cutting to sewing. a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time Non-value-added lead time Total lead time minutes minutes minutes b. Compute the value-added ratio. Round to one decimal place. %

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Lead Time
Pockets Inc. manufactures cargo pants in the cutting and sewing process. Cargo pants are manufactured in batches of 30. The cutting time is
4 minutes per unit. The sewing time is 12 minutes per unit. It takes 20 minutes to move a batch of jeans from cutting to sewing.
a. Compute the value-added, non-value-added, and total lead time of this process.
Value-added lead time
Non-value-added lead time
Total lead time
b. Compute the value-added ratio. Round to one decimal place.
%
minutes
minutes
minutes
Transcribed Image Text:Lead Time Pockets Inc. manufactures cargo pants in the cutting and sewing process. Cargo pants are manufactured in batches of 30. The cutting time is 4 minutes per unit. The sewing time is 12 minutes per unit. It takes 20 minutes to move a batch of jeans from cutting to sewing. a. Compute the value-added, non-value-added, and total lead time of this process. Value-added lead time Non-value-added lead time Total lead time b. Compute the value-added ratio. Round to one decimal place. % minutes minutes minutes
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