What is the required buffer capacity of wip inventory rack

Assignment Help Cost Accounting
Reference no: EM132819438

Sushi's Gears is a production facility that produces metal gears. The first step is stamping, which happens at a press. There are two identical presses that operate simultaneously (gears can be stamped on either press). A press stamps one part at a time. It takes 1 minute to stamp a part, including loading and unloading. Before beginning a new batch of parts, there is a 20-minute setup involving die change. The batch size is 100 parts. In other words, after stamping 100 parts, the press must be set up again. The stamped parts are stored in a buffer area, called as the work-in-process (WIP) inventory rack. From here, the parts are taken to the furnace, where they are annealed (heat treated). Parts from different batches can be annealed together. To perform annealing, a boat (a type of fixture for holding stamped parts) loaded with parts is inserted into the furnace. While those parts are being annealed, newly stamped parts are loaded onto a spare furnace boat. Each boat can hold 70 parts. Once the boat is full, additional stamped parts are placed in the WIP inventory rack. After annealing is completed, the boat in the furnace is swapped with the boat outside the furnace and the next annealing cycle begins. Each annealing cycle takes a total of 30 minutes. The time to load and unload parts from a boat is very short, and can be neglected. The above system operates 8 hours a day, Monday through Friday. On Mondays, however, the furnace and both boats are cleaned. Thus, all parts stamped by the presses go straight to the WIP inventory rack on Mondays.

Problem 1. What is the throughput capacity of this system, in parts per week? In other words, how many parts can be processed per week?

Problem 2. What is the required buffer capacity of the WIP inventory rack?

Problem 3. What is the average inventory level in the WIP inventory rack (averaged over the factory operating hours)?

Problem 4. What is the system throughput capacity if the WIP inventory rack can hold only 500 parts?

Problem 5. What is the average number of factory operating hours that a part spends in the WIP rack in question 2? (Parts that do not wait in the WIP rack should be included in this average, and have zero waiting time by definition.)

Problem 6. What is the average number of factory operating hours that a part spends in the WIP rack in question 4? (Parts that do not wait in the WIP rack should be included in this average, and have zero waiting time by definition.)

Reference no: EM132819438

Questions Cloud

Starting your project plan : You were required to develop and submit a project idea. Your instructor should have provided you with either the okay to proceed with your idea
What you believe are the three most important concepts : Identify what you believe are the three most important concepts that they have they have presented as a part of their work. Explain why you think these are.
Which is an essential element of a joint arrangement : Which is an essential element of a joint arrangement? Under the PFRS 11, the arrangement between Moratalla Co and Magtibay Co is most likely a
Determine how much will paid to the preferred shareholders : Assume instead that the maximum cash dividend the company can pay in 2021 is $168,200. Determine how much will be paid to the preferred shareholders
What is the required buffer capacity of wip inventory rack : What is the throughput capacity of this system, in parts per week? In other words, how many parts can be processed per week?
Measurement scales : Nominal scales are used to describe a group or set of people with basic labels such as black, white, Christian or Jewish.
Describe the various factors and key decision areas : Describe the various factors and key decision areas that will dictate which of these CA methods should be used.
Briefly explain different types of survey bias : Briefly explain 3 different types of survey bias, and suggest ways that these biases can be avoided or mitigated.
Quantitative and qualitative voc methodologies : Compare and contrast the use of quantitative and qualitative VOC methodologies.

Reviews

Write a Review

Cost Accounting Questions & Answers

  How the labor yield variance equals

How The labor yield variance equals? (Inputs allowed - inputs used) x budgeted weighted-average materials unit price for the planned mix.

  Prepare a physical flow schedule

Fabrication and Assembly. The following information was obtained for the Fabrication Department for June:

  What might mehl do to alleviate this cash crunch

What might Mehl do to alleviate this cash crunch? Record the entry that Mehl would make when it raises the needed cash.

  Brief commentary on the variances computed

Brief commentary on the variances computed above, including explanations regarding the price and the quantity variances for Direct materials

  Find break-even point in rupee

Suppose the whole sale price of QMS is Rs. 17,000 per unit, fixed costs is Rs. 100 million, variable cost is Rs. 12,500 per unit. Find Break-even point in rupee

  Volume-based costing versus activity-based costing

Determine the company's predetermined overhead rate using the direct labor cost as the single cost driver and determine the full product costs and selling prices of 1 pound of Mona Loa coffee and 1 pound the Malaysian coffee using the above single c..

  Prepare journal entries to record the 2014 transactions

At December 31, 2013, Crawford Company had a balance of $15,000 in Allowance for Doubtful Accounts. During 2014, Crawford wrote off accounts totaling $14,100.

  Determine total cost of merchandise sold

Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period and determine the ending inventory cost.

  What are the variable and absorption-cost net incomes

What are the Variable and absorption-cost net incomes? Variable manufacturing costs per unit 2 Beginning inventory. Variable selling costs per unit sold 1

  Construct a partial income statement

Construct a partial income statement beginning with income from continuing operations - Discontinued operations.

  Make responsibility cost report for maintenance department

Prepare responsibility cost report for the maintenance department. During August, the maintenance department incurred a total cost of P50,000

  You are to complete the following taskfor each of the

you are to complete the following taskfor each of the following errors describe to a recently hired bookkeeper how it

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd