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Value-Stream Reporting with Inventory Decrease Rivera Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value streams produces a family of small electric tools. The value-stream team managers were quite excited about the results, as some of their efforts to eliminate waste were proving to be effective. During the most recent three weeks, the following data pertaining to the electric tool value stream were collected: Week 1: Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Week 2: Week 3: Demand= 90 units @ $60 Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Required: Production = 90 units using $300 of materials and $1,200 of conversion cost Sales Demand= 100 units @ $60 Production = 90 units using $300 of materials and $1,200 of conversion cost Beginning inventory= 0 Demand= 90 units @ $60 Production= 100 units using $650 of materials and $1,500 of conversion cost 1. Prepare a traditional income statement for each week. Gross profit Rivera Manufacturing, Inc. Traditional Income Statement Week 1 Week 2 Cost of goods sold Week 3

Value-Stream Reporting with Inventory Decrease Rivera Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value streams produces a family of small electric tools. The value-stream team managers were quite excited about the results, as some of their efforts to eliminate waste were proving to be effective. During the most recent three weeks, the following data pertaining to the electric tool value stream were collected: Week 1: Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Week 2: Week 3: Demand= 90 units @ $60 Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Required: Production = 90 units using $300 of materials and $1,200 of conversion cost Sales Demand= 100 units @ $60 Production = 90 units using $300 of materials and $1,200 of conversion cost Beginning inventory= 0 Demand= 90 units @ $60 Production= 100 units using $650 of materials and $1,500 of conversion cost 1. Prepare a traditional income statement for each week. Gross profit Rivera Manufacturing, Inc. Traditional Income Statement Week 1 Week 2 Cost of goods sold Week 3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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2. Calculate the average value-stream product cost for each week. If required, round your answers to the nearest cent. Week 1 Week 2 Week 3 Sales Materials $ $ 3. Prepare a value-stream income statement for each week. Assume that any increase in inventory is valued at average cost. If an amount is zero, enter "0". Gross profit Conversion cost per unit Value-stream profit Change in inventory per unit per unit Rivera Manufacturing, Inc. Value-Stream Income Statement Week 1 Week 2 $ Week 3 $
Transcribed Image Text:2. Calculate the average value-stream product cost for each week. If required, round your answers to the nearest cent. Week 1 Week 2 Week 3 Sales Materials $ $ 3. Prepare a value-stream income statement for each week. Assume that any increase in inventory is valued at average cost. If an amount is zero, enter "0". Gross profit Conversion cost per unit Value-stream profit Change in inventory per unit per unit Rivera Manufacturing, Inc. Value-Stream Income Statement Week 1 Week 2 $ Week 3 $
Value-Stream Reporting with Inventory Decrease Rivera Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value streams produces a family of small electric tools. The value-stream team managers were quite excited about the results, as some of their efforts to eliminate waste were proving to be effective. During the most recent three weeks, the following data pertaining to the electric tool value stream were collected: Week 1: Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Week 2: Week 3: Demand= 90 units @ $60 Production = 90 units using $300 of materials and $1,200 of conversion cost Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Required: Demand= 100 units @ $60 Production = 90 units using $300 of materials and $1,200 of conversion cost Demand= 90 units @ $60 Beginning inventory= 0 Production= 100 units using $650 of materials and $1,500 of conversion cost 1. Prepare a traditional income statement for each week. Gross profit Rivera Manufacturing, Inc. Traditional Income Statement Week 1 Week 2 Sales Cost of goods sold Week 3
Transcribed Image Text:Value-Stream Reporting with Inventory Decrease Rivera Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value streams produces a family of small electric tools. The value-stream team managers were quite excited about the results, as some of their efforts to eliminate waste were proving to be effective. During the most recent three weeks, the following data pertaining to the electric tool value stream were collected: Week 1: Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Week 2: Week 3: Demand= 90 units @ $60 Production = 90 units using $300 of materials and $1,200 of conversion cost Beginning inventory= 5 units @ $20 ($5 materials and $15 conversion) Required: Demand= 100 units @ $60 Production = 90 units using $300 of materials and $1,200 of conversion cost Demand= 90 units @ $60 Beginning inventory= 0 Production= 100 units using $650 of materials and $1,500 of conversion cost 1. Prepare a traditional income statement for each week. Gross profit Rivera Manufacturing, Inc. Traditional Income Statement Week 1 Week 2 Sales Cost of goods sold Week 3
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