Table 919
the Illinois Appliance Company Is Installing a Line to to Produce

question 19

Multiple Choice

Table 9.19
The Illinois Appliance Company is installing a line to produce a vacuum cleaner, and you, as the operations manager, are responsible for designing the line. The line has to produce 30 units per hour. The work elements to be performed are as follows, with the time needed and immediate predecessor(s) also shown.
$$\begin{array} { | c | c | c | } \begin{array} { c } \text { Work } \\\text { Element }\end{array} & \text { Time (sec) } & \begin{array} { c } \text { Immediate } \\\text { Predecessor(s) }\end{array} \\\hline \mathrm { A } & 55 & - - \\\text { B } & 45 & \mathrm {~A} \\\mathrm { C } & 25 & \mathrm {~B} \\\mathrm { D } & 20 & \mathrm {~B} \\\mathrm { E } & 40 & \mathrm {~B} \\\mathrm {~F} & 50 & \mathrm { D } \\\mathrm { G } & 70 & \mathrm { D } \\\mathrm { H } & 45 & \mathrm {~F} , \mathrm { G } \\\mathrm { I } & 20 & \mathrm { E } \\\mathrm { J } & 80 & \mathrm { H } , \mathrm { I } \\\hline\end{array}$$
-Use the information in Table 9.19.What is the theoretical minimum number of stations?

• A) TM = 3 stations
• B) TM = 4 stations
• C) TM = 5 stations
• D) TM = 6 or more stations

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Definitions:

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average of all units available for sale.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, converting them into an amount of fully completed units.

Conversion Activity

The process of transforming raw materials or components into finished goods or services.

Cost Per Equivalent Unit

The calculation used in process costing to allocate costs to partially completed units, giving them the same treatment as fully completed units.