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Shields Manufacturing produces containers for nurseries and landscaping businesses. The company competes based on its low-cost, high-quality products. As the company’s expenses have risen, management has become concerned with the need to streamline various processes in order to reduce costs without reducing quality. The following table shows the time needed to produce a batch of 1-inch plant flats:

              Activity                                             Time to Complete

Materials moved to production floor                      24 minutes

Production in station                                            1 35 minutes

Materials moved to station                                    2 6 minutes

Wait to begin at station                                        2 9 minutes

Production in station                                           2 44 minutes

Inspection                                                            5 minutes

Materials moved to finished goods inventory          5 minutes

(a) What is the manufacturing cycle time (throughput time) to produce a batch of 1-inch plant flats and prepare it for sale?

Manufacturing cycle time __________ minutes

(b) How much of the process time is value-added?

Value-added time_______________ minutes.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M91971725

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