Durkee Corporation Keeps Careful Track of the Time Required to Fill

question 38

Essay

Durkee Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below: Required:
a. Determine the throughput time. Show your work!
b. Determine the manufacturing cycle efficiency (MCE), Show your work!
c. Determine the delivery cycle time. Show your work!

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Definitions:

Accounting Period

A specific period of time for which financial records are maintained and financial statements are prepared.

Unearned Revenue

Refers to the money received by a company for goods or services yet to be delivered or performed, thus considered a liability.

Prepayment

The act of paying for a good, service, or expense in advance before receiving or incurring it.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.