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Lemmons Company makes a product that experiences the following activities and times:
Processing (two departments)
45.0
Inspecting
3.0
Rework
7.5
Moving (three moves)
12.0
Waiting (for the second process)
36.0
Storage (before delivery to customer)
46.5
Required
1. Compute the MCE for this product.
2. Discuss how lean improvements can help improve this efficiency measure.
3. Is this a lag or a lead measure? If lag, what would be some lead measures that would affect this measure?
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Determine whether each of the joint products should be sold as is, or processed further
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1. From the information given, record closing entries. 2. If closing entries were not prepared at the end of the accounting period, what problems would result in the next accounting period?
If you were a small business owner would you implement an activity-based costing system. What potential benefits or pitfalls do you foresee?
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