Medinc produces disinfectants by mixing 2 chemical solutions in a machine to become a disinfectant solution (solution 1 and solution 2). Solution 1 is the first process which is carried out at workstation A for 0.5 minutes per solution then continued at workstation B for 0.2 minutes per solution. Then together solution 1 is mixed with solution 2 at workstation C for 0.8 minutes per solution. Workstations B and C are processed at workstation D for mixing together where the process is 10 minutes per solution until it becomes a disinfectant solution for sale to customers. a. Which workstations are the bottleneck? Explain with a picture of the workstation. b. What is the resulting time (throughput time) of the entire work system above? c. How much disinfectant solution can a company produce per hour?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Medinc produces disinfectants by mixing 2 chemical solutions in a machine to become a disinfectant solution (solution 1 and solution 2). Solution 1 is the first process which is carried out at workstation A for 0.5 minutes per solution then continued at workstation B for 0.2 minutes per solution. Then together solution 1 is mixed with solution 2 at workstation C for 0.8 minutes per solution. Workstations B and C are processed at workstation D for mixing together where the process is 10 minutes per solution until it becomes a disinfectant solution for sale to customers.
a. Which workstations are the bottleneck? Explain with a picture of the workstation.
b. What is the resulting time (throughput time) of the entire work system above?
c. How much disinfectant solution can a company produce per hour?
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