...Percentage of Conversion Cost = Conversion Cost 220,000 35% $628,571 rounded to nearest dollar ( this is total conversion cost) 100%-65% = 35% Given: Material Purchases $325,000 Conversion Cost from your calculation above $628,571 Direct Labor $220,000 Less Direct Labor Cost 220,000 Sales $1,350,000 Manufacturing Overhead $408,571 Gross Margin 30% Costs of Good Avilable for Sale $1,020,000 Cost of Goods Manufactured: Prime Costs $545,000 Manufacturer Overhead 65% Cost of Goods Available for Sale $1,020,000 Raw Materials $41,000 Less: finished goods inventory, beginning 35,000 Work in Progress $56,000 Cost of Goods Manufactured $985,000 Finished Goods $35,000 The easiest way to proceed from this point is to place all of the amounts that are known in a partially completed schedule of cost of goods manufactured and a partially completed income statement. Then fill in the missing amounts by analyzing the available data. Direct...
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...FIFO Process Cost Problems Dooley Chemical Company makes one product a supplement capsule taken to enhance a person’s focus and provide extra energy. They are sold primarily to students studying for and taking exams. The capsules are made in three steps: Blending, Encapsulating, Packaging. The company uses a FIFO process cost system. During the month of September 2014 the Blending department had a beginning WIP inventory of 12,000 units that were 100% complete for DM and 40% complete for Conversion Cost(CC). During the month the company started 160,000 units. At the end of September the Blending department had an ending Work in Process Inventory of 8,000 units 100% complete for DM and 80% complete for CC. Dooley’s Blending department had the following costs: Beginning WIP Direct Materials $24,000 Conversion Cost $4,800 Cost incurred in September DM $320,000 CC $160,000M Required: a. Use FIFO to do a 4 step cost of production report b. What is the journal entry to transfer the finished goods to work in process. Himax Chemical Company makes one product a marijuana capsule sold in the medical market in states where it is legal. The capsules are made in three steps: Grinding, Encapsulating, Packaging. The company uses a FIFO process cost system. During the month of September 2014 the Grinding finished 15,000 units and transferred it to Encapsulating. Encapsulating had a beginning WIP inventory of 1,000 units that were 100% complete for Transferred In (TI)...
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...and shareholders. Cintas firmly believes that they are responsible stewards of the environment. They take pride in being diverse and most importantly, being safe while on the job. Safety is embedded in the fabric of Cintas. Cintas is widely recognized as an industry leader in safety innovation and everyday they work relentlessly at all levels of the company to be sure that remains true. Disruptions while working can have a negative effect on your business when you are trying to please a customer or finish a task in a timely manner. The key to managing disruptions is simple, it is all about how you or your employees can manage them. An important aspect to consider when managing disruptions is to manage your time and space. Reserve regular blocks of time for work that requires concentration. Another point to consider when managing disruptions is to limit your technology interruptions. Turn off email and text alerts and if your role allows, only check your messages two to three times a day. Reserve your personal calls and errands for the lunch hour. Last, but not least, organize your workspace to minimize visual distractions. One suggestion is to have a tray for incoming work and keep only the project you are working on now in front of you. Another method that Cintas uses to implement lean is to make their operating system more flexible. In some cases this...
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... Date: January 23, 2011 Re: Cost Changes Impacting Company’s Net Income Scope and Objective Twisto Pretzel Company is vigilant in their decision making process, which evaluates all manufacturing costs involved to measure the Company’s growth by measuring profitability. Twisto Pretzel Company goal is determined to remain financially stable in the support of its customers, suppliers, and the Company’s associates. In conducting my research, I looked into the Company’s financial data for 2011, by utilizing additional year-end data of 2010. The data consisted of purchases of raw material, ending work-in process inventory, and indirect labor. Determining the impact of the Company’s profitability, a sensitivity analysis in cost of goods manufactured, cost of goods sold, and identifiable variable changes, impacted costs and the Company’s net income. The Company’s management team provided three scenarios that illustrate my objective. Significance of the Sensitivity Analysis Sensitivity analysis is a technique that addresses how changes in variables affect the uncertainty of a given set of assumptions. The results will illustrate how the analysis determines the estimates, upon which it is based. To better demonstrate how the analysis will work for Twisto Pretzel Company for December 31, 2011, I have conducted three separate analyses that demonstrate how each analysis impacts the Company’s profitability: 1. Case 1 – Sensitivity...
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...Case Analysis: 1.1 Hospitals are Driving toward a Leaner Organization Background: To obtain sustainable organizational efficiency and service quality, many hospitals have adopted an Open Systems Perspective by using “lean management” procedures borrowed from leading car manufacturers, in an effort to “reduce and remove waste from work processes”. These processes improved organizational efficiency reduced costs and provided better patient care. i What ‘seems’ to be the Problem: Secondary Symptoms Full waiting rooms, long wait times, inefficient use of supplies and budgets, needless stress and high mortality rate is feedback from the external environment that the hospitals are not meeting the needs of their stakeholders, or fitting in with their environment. Before adapting lean management processes, hospital staff and patients alike shared the burden of what appeared to be the inevitable consequences of health care delivery and a closed systems perspective.ii These problems are manifestations of organizational deficiencies which negatively affect the quality of patient care, the distribution of hospital resources and employee morale. The Real Reasons Hospitals are Facing Difficulties: Primary Problems The secondary symptoms are indicative of underlying issues, highlighting their poor organizational-environmental fitiii and the ineffectiveness of communication between Internal Subsystems.iv To a large extent hospitals have not adapted to their external environment nor have hospitals...
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...A Process Recording is a tool used to in Master of Social Work programs that teaches the students how to conduct a successful interview but how to process and analyze the data put before them. Through the process recording process, students are able to identify different approaches and how they could better use their exploring skills. After this process, students should be able to not only recognize exploring skills but also have a better use of them. For this process recording, I conducted an intake with a parent who felt the school was targeting her child. Exploring Skills The exploring skills are tools Social Workers use to conduct interviews or any conversations with their clients. These tools are a very common but effective. I used the following skills...
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...of the ground, processing, and transportation. Whether you’re producing gold, diamonds, platinum, coal, iron ore, aluminium, or copper – the more you dig and process, the more you sell. But how much control and monitoring do you have over your work in process? How visible is your material as it flows through stockpiles, smelters and concentrators? Do you have visibility of progress toward your throughput goals and objectives? These are important questions mining operators address every day. These questions are imperative to success, allowing mining organisations to be competitive in global markets, increase shareholder returns, increase operational efficiencies, and reduce energy consumption. > What is Ampla Inventory? Ampla Inventory is a module of Ampla MES software solution. The total Ampla solution is working today for some of the world’s largest mining organisations. Ampla bridges communication between the plant floor and corporate or as they say, it is at the coalface of the operation. Ampla provides mining organisations with the competitive edge to realise business and operational targets, ensuring increases in market share and shareholder return. + Growing demand for raw materials and minerals. = Real-time visibility of your stockpiles and work in process inventory. Increased Operational Effectiveness A lack of materials visibility often leads to a financial impact. Our solution gives you the tools to increase...
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...Purchases 120,000 Work in Progress July 1 Balance (B) July 31 Completed jobs (F) 31 Materials (C) 31 Direct labor (D) 31 Factory overhead applied (E) Finished Goods July 1 Balance 0 July 31 Cost of goods sold (G) 31 Completed jobs (F) Wages Payable July 31 Wages incurred 120,000 Factory Overhead July 1 Balance 22,000 July 31 Factory overhead applied (E) 31 Indirect labor (H) 31 Indirect materials 16,000 31 Other overhead 95,000 In addition, the following information is available: a. Materials and direct labor were applied to six jobs in July: Job No. Style Quantity Direct Materials Direct Labor No. 21 X-10 200 $ 20,000 $15,000 No. 22 X-20 400 34,000 26,000 No. 23 X-50 200 14,000 8,000 No. 24 T-20 250 30,000 25,000 No. 25 X-40 180 22,000 17,500 No. 26 T-10 140 8,000 4,500 Total 1,370 $128,000 $96,000 b. Factory overhead is applied to each job at a rate of 160% of direct labor cost. c. The July 1 work in progress balance consisted of two jobs, as follows: Work in Process Job No. Style July 1 Job 21 X-10 $ 6,000 Job 22 X-20 16,000 Total $22,000 d. Customer jobs completed and units sold in July were as follows: Completed Units Sold Job No. Style in July in July No. 21 X-10 X 160 No. 22 X-20 X 320 No. 23 X-50 0 No. 24 T-20 X 210 No. 25 X-40 X 150 No. 26 T-10 0 1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings: July 1 Cost of Job Work in Direct Direct...
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...Knitwear cellular setup (Process – Focused Layout) Traditional Operations: Yam & Fabric supplier – 2.5 months – average lead time Knitting – throughput time – 80 hrs Dyeing – 5 weeks – average lead time Cutting – 40 hrs – throughput time Sewing and finishing – 120 hrs – throughput time Lead time & Throughput time – batch size = 200 units Bottle neck operation is sewing & finishing. Work in progress calculations: Units progress / day = 2000 units Through put time = 15 days WIP = 2000 *15=30000 Units No of workers = 42 WIP/worker = 30000/42=720 units Cellular operations Work in progress calculations Units progress / days = 2000 units Through put time = 1 days WIP = 2000*1= 2000 units No of works = 42 WIP/worker=2000/42=48 units Cycle time = throughput time /work in progress Traditional operations: 3*5*8*60/720=10 mins Cellular operations: 1*8*60/48=10 mins Hence we can infer that output per worker remains the same. 2. How does the performance of the traditional operation and cellular manufacturing system differ? (E.g. how Work in Process Inventory changes when cells are implemented? Throughput time (sewing & finishing): Traditional: 15 days / Cellular operation: 1 day No of sewing machines required: Traditional opert. 55 / Cellular operation: 84 Capital on machines: Traditional : Low / Cellular operation: High Average price of sewing machine: Traditional: 55*55000=3025000 ff / Cellular operation: 84*55000=4620000 ff Work in process inventory: Traditional:...
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...company’s operation to run effectively? Over the long run? In operation managements, there are basically ten critical decisions. Those are; Service and product design, Quality management, Process and capacity design, Location, Layout design, Human resources and job design, Supply-chain management, Inventory management, Scheduling, and finally Maintenance decision. Based on Chad’s Creative Concepts case study, I can conclude that Chad Thomas is now need to make those decisions to make sure the operation of his company flows effectively without stopping at any stage up to the current situation. The situation that Chad is facing is between the manufacturing and turn over. There is no problem with his existing staffs according to the case text. Therefore, Chad now needs to focus on inventory, scheduling, and maintenance to make the right decisions for each of it. Based on text, his manufacturing of standard line has many raw materials in manufacturing as work in process. This makes the progress is slow and caused Chad’s company unable to make a good turn over. They came across a critical situation as their finance status is not promising and not satisfying. Now, he need to make scheduling decision to make sure there is not many raw materials in the work in progress status. The standard line manufacturing need to be scheduled properly to avoid this problem. Secondly, the text had mentioned that standard product’s warehouse is costly to keep the...
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...providing a place where families can send their family members with disabilities during the day, they also provide many of these individuals with employment opportunities. The problem that I am going to address is in order for them to have work available they have to solicit contract work from other businesses. We have a marketing department that research business that may benefit from our services. I will analyze ways to increase the volume of work that can be done and how to reach a larger market to supply our individuals with contract work. Objectives In today’s world of the fast growing past and the decline of the economy, companies are looking for ways to cut cost and outsource small project to other companies. Technology is making fast waves; however, some work continues to need workers. In order to be more competitive and efficient in the growing market Pine castle can offer services to your business needs. Pine Castle goal is to create new ways to gain business from other organizations and to supply individuals with disabilities a chance to work and earn wages to support themselves. Organizations are looking for ways to get the most for their money and at the same time maintain a quality product. Pine castle have what they peace work and the consumers can fulfill a project a t a cost that is lower than the cost for you to hire an entire department or outsource to another outside vendor. Here at Pine Castle we can show you what we have to offer your organization and...
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...itself to manufacture these boards to small and large electronic firms and management envisioned it as one of the industry leaders. With 750 competitors in the US alone, and a market that is volatile, Donner’s ability to anticipate and resolve design problems and prototype techniques enabled it to maintain its competitive edge. However, this competitive edge has been compromised by poor on-time delivery and high rate of product return, in addition to planning and manufacturing problems that caused bottlenecks, shifting bottlenecks and improper utilization of labor. These problems began to hamper the overall performance of the firm, and management started evaluating the company’s position and different strategic policies. 1. Draw the process flow diagram for a normal order that goes through the production system at Donner. Receive "Master" artwork from customer Produce negative image from circuit. Repeat image on each panel Inspect for visual defects Shear laminate into panel. Punch holes Raw material purchase Transfer pattern to panel Copper immersion bath * Wash * Scrub * Coat Photoresist *DFPR...
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...Based on case, Chad is now need to make decisions to make sure the operation of his company flows effectively without stopping at any stage up to the current situation. In the short run, Chad needs to focus on inventory, scheduling, and maintenance to make the right decisions for each of it. For the Scheduling decision, chad’s manufacturing of standard line has many raw materials in manufacturing as work in process. This makes the progress is slow and caused Chad’s company unable to make a good turn over. They came across a critical situation because their finance status not satisfying. Now, it needs to make scheduling decision to make sure there are not many raw materials in the work in progress status. The standard line manufacturing needs to be scheduled properly to avoid this problem. Secondly, the text had mentioned that standard product’s warehouse is costly to keep the inventory. To solve out this problem, Chad needs to make inventory and supply-chain decision. It must decide a good supply chain and implement it before it’s too late. It can also set daily objectives for its workers. The workers have to fulfill the daily targets of both the custom and standard products. As a result, this will lead to a decrease of the inventory as well as lowering costs generated by the standard line. Maintenance decision The third decision type is the maintenance decision. Chad’s company is now facing problem in term of finance and insufficient of capacity. It needs to...
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...RUNNING HEAD: Hotel Escargo Hotel Escargo AIU – MGT656 Abstract In this paper Hotel Escargo’s collected data is graphed and information for the work management and time study analysis is described. One area is area is focused on to create a fishbone diagram to capture the potential root causes. Hotel Escargo Hotel Escargo’s check-in process is expected to be completed in four minutes or less. The average check-in time for guest on July 31st was four minutes and 51 seconds, the minimum time the check-in process took was two minutes and 23 seconds and the maximum time was eight minutes 45 seconds. The issue that occurs during check-in is the average time for check-in is 51 seconds more than is to be expected and exceeds it by four minutes in some cases. Figure 1 will show the data in a table (Hotel, 2014). Work measurement is the application of time and motion study with activity sampling techniques that will determine the time a qualified worker can complete a specific job in a set level of performance. It’s used to determine the budget, planning for manpower, set the schedule, determine the cost, etc (Work, 2014). The work measures to do would be to find three of the least qualified guest service clerks to check-in ten people as efficiently as possible. Once the thirty people are checked-in, the average of their times should determine if there is a problem with the check-in times. A time study analysis looks at a specific job to find the most efficient method to do...
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...Working in partnership | Introduction: When people doing a job together in a same time with a same quest it is as usually known as working in partnership. Many tough job can be solved if people working with together, different types of reason are existing on a partnership contract and that might develop work or ideas. There have a lots of reason are beneath on a group of people working as a partnership. When a crew of people working with together their ideas will be developed and generated by others. Some of partners among the group will be able to sharing their valuable skill and knowledge in a successful way to assure your partnership activity. If you want to discover people who are working with you as a partner you will not have to look so wide. There are lots of people who are interested to work with you if you see they may your neighbors, classmate, local council, community etc. Just remember one thing before starting work as a partner it is very badly need to think why you want and why your partners want to work with you together. Task 1: Fathom the partnership metaphysics and relationships about health and social care services: 1(a) the philosophical approach taken by practitioners at Dilly’s Diabetic Centre The philosophical approach is a constitutional graph to archive the fact of an affair and the credibility of related people. Depending on strategy constitutional graph vary for person to person, organization to organization. This approach is system...
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