Instruction 18-8
a Supplier of Silicone Sheets for Producers of Computer

question 31

True/False

Instruction 18-8
A supplier of silicone sheets for producers of computer chips wants to evaluate her manufacturing process. She takes a sample size of five from each day's output and counts the number of blemishes on each silicone sheet. The results from 20 days of such evaluations are presented below. She also decides that the upper specification limit is 10 blemishes.
$\begin{array}{llllllll}\text{Day}&1&2&3&4&5&\text{Mean}&\text{Range}\\\hline1 & 8 & 10 & 14 & 6 & 5 & 8.6 & 9 \\2 & 8 & 13 & 6 & 6 & 10 & 8.6 & 7 \\3 & 10 & 12 & 7 & 7 & 9 & 9.0 & 5 \\4 & 5 & 9 & 12 & 7 & 10 & 8.6 & 7 \\5 & 8 & 3 & 8 & 9 & 10 & 7.6 & 7 \\6 & 9 & 7 & 9 & 6 & 9 & 8.0 & 3 \\7 & 10 & 10 & 5 & 7 & 6 & 7.6 & 5 \\8 & 10 & 9 & 10 & 6 & 5 & 8.0 & 5 \\9 & 6 & 10 & 6 & 9 & 9 & 8.0 & 4 \\10 & 6 & 9 & 8 & 6 & 8 & 7.4 & 3 \\11 & 8 & 5 & 6 & 10 & 10 & 7.8 & 5 \\12 & 6 & 4 & 7 & 7 & 12 & 7.2 & 8 \\13 & 7 & 5 & 7 & 6 & 9 & 6.8 & 4 \\14 & 5 & 8 & 8 & 7 & 6 & 6.8 & 3 \\15 & 7 & 12 & 10 & 6 & 10 & 9.0 & 6 \\16 & 7 & 11 & 4 & 7 & 8 & 7.4 & 7 \\17 & 8 & 4 & 5 & 4 & 7 & 5.6 & 4 \\18 & 11 & 4 & 11 & 11 & 10 & 9.4 & 7 \\19 & 6 & 10 & 6 & 10 & 10 & 8.4 & 4 \\20 & 6 & 12 & 12 & 6 & 8 & 8.8 & 6\end{array}$
-Referring to Instruction 18-8,based on the chart for the number of blemishes,it appears that the process is out of control.

Grasp the concept of responsibility accounting and the role of department managers in controlling costs.

Explain the impact of underapplied overhead on cost of goods sold.

Comprehend the flow of costs in manufacturing accounts and the calculation of the cost of goods manufactured and sold.

Recognize the principles of inventory valuation and the implications of different valuation methods.

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Definitions:

Ethical Decision-making

The method of assessing and selecting options in a way that aligns with moral standards.

Justice

A fundamental moral concept focusing on the fairness, righteousness, and equality in the distribution of resources, opportunities, and treatment within society.

Ethics

Moral principles that guide our behavior.

Moral Question

An issue that involves judgments about what is right and wrong, ethical or unethical.