McDaniel Shipyards wants to develop a control chart to assess the quality of its steel plate.They take ten sheets of 1" steel plate and compute the number of cosmetic flaws on each roll.Each sheet is 20' by 100'.Based on the following data,develop limits for the 3-sigma control chart,plot the control chart,and determine whether the process is in control.
Definitions:
Weighted-Average Method
An inventory valuation method that assigns the average cost of all similar items in the inventory to the cost of goods sold and ending inventory.
Direct Labor Cost
The total expense of paying employees who directly manufacture or produce goods, excluding indirect labor like maintenance personnel.
Equivalent Units
A concept used in the cost accounting process that expresses the amount of work in process and finished units as a total of equivalent complete units.
Cost Per Equivalent Unit
A calculation used in process costing that assigns a cost to partially completed units, making them equivalent to fully completed units for inventory valuation.
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