Figure 15-2 the Following Information Relates to Cranmore Manufacturing: to Produce a Produce

question 157

Multiple Choice

Figure 15-2
The following information relates to Cranmore Manufacturing: To produce a unit of product:
Cutting department 5 minutes per unit
Welding department 8 minutes per unit
Polishing department 3 minutes per unit
Finishing department 4 minutes per unit
There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes.
-Refer to Figure 15-2. If Cranmore produces in batches of 10 units, how much time would have elapsed by the time the 10th unit is produced under a manufacturing cell environment (assuming the cell is processing continuously) ?

• A) 60 minutes
• B) 65 minutes
• C) 150 minutes
• D) some other amount

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Definitions:

Specific Identification Method

The specific identification method is an approach to inventory valuation that tracks the cost of individual items or groups of similar items.

Inventory Costing

The method of accounting that assigns costs to inventory, typically involving the calculation of costs of goods sold and ending inventory values.

High-Unit Cost

The condition of having a high cost per unit of product, often due to expensive inputs or inefficient production.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or manufactured first are sold or used first.