Compute maintenance cost per roll for each type of tubing

Assignment Help Financial Accounting
Reference no: EM13776902

Prior to install a JIT system, Plasticize Company used machine hours to assign maintenance costs to it three products of 3-inch, 5inch and 7-inch plastic tubing. The maintenance costs totaled 120,000 per year. The machine hours used by each product and the quantity produced of each product are as follows:

3 inches Machine hours: 1,000 Qnty produced: 400 rolls

5-inches Machine hours: 1,500 Qnty produced: 450 rolls

7-inches Machine hours: 2,500 Qnty produced: 1,250 rolls

After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled 120,000; however, these costs are now traceable to each cell. Cell 3 inches $20,000, Cell 5 inches 32,400 and Cell 7-inches 67,600

1) Compute the maintenance cost per roll for each type of tubing before JIT is installed

2) Compute the maintenance cost per roll for each type of tubing after JIT is installed

3) Explain why the JIT maintenance cost per roll is more accurate thatn the cost per roll using the traditional approach.

Reference no: EM13776902

Questions Cloud

The united states of america : Provide the correct name for the following cases: The United States of America v. Thomas Terry Mary Kay Kraft, Mark Johnson, and Vanessa Hays v. Joseph Beazley and the City of Chicago Kerry Handle et al v. The Jamestown Cooperative Kalley Institute v..
Describe the necessary hardware and software components : Your company wants to create an application that allows employees to dial in from a remote location and using a single connection, access their voice mail, e-mail, and data files. What kind of system would allow this? Describe the necessary hardware ..
Multinational transfer pricing : Multi-national corporations can use transfer pricing to adjust costs in transactions involving the transactions between divisions in different countries. There may be a tax consequence. Is this ethical?
Analyze the development of tort law from the concept : Analyze the development of tort law from the concept and degree of negligence to the application of the law to strict / product liability. Evaluate the success of tort law in providing solutions to 21st Century health care disputes. Rationalize your ..
Compute maintenance cost per roll for each type of tubing : Prior to install a JIT system, Plasticize Company used machine hours to assign maintenance costs to it three products of 3-inch, 5inch and 7-inch plastic tubing. The maintenance costs totaled 120,000 per year. After installing JIT, three manufacturin..
Draft case briefs. instructions brief a case using the firac : Draft case briefs. Instructions Brief a case using the FIRAC format discussed in the assigned readings and presentations. Brief any one of the following from Appendix A of the Putman Text (or you may find the case on Westlaw of course)
Calculate the direct material usage variance : The following activity occurred during the month of December: Materials purchased: 5,200 costing $29,900, Material used: 4,750 yrds, Units produced 1,000 units, DL 2,100 hours costing $17,850. Calculate the direct material price variance. Calculate t..
Find and present the answer to the issue using legal analys : Instructions For your Course Project this term, you will research an issue in depth and compose an answer to your chosen issue, in the form of an internal legal memo. As you learn how to research an issue, you will first work on a research plan and f..
Prepare a production budget in units : hree pounds of materials are required for each unit produced. Each pound of material costs $20. Inventory levels for material equal 30percent of the needs for the next month. Materials inventory on Jan 1 was 5,000 pounds. Prepare a production budget ..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Indifferent between the two manufacturing methods

Martinez Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufact..

  Difference between general partnership and limited liability

What is the difference between a general partnership and a limited liability company? When might each type of entity be used? Why

  Prepare a balance sheet as of february 29

Prepare an income statement for the month ended February 29, 2012 - prepare a statement of owners equity for the month ended February 29, 2012.

  How well costs were controlled in this department

Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.

  Total annual inventory and purchasing cost

You are the purchasing manager of a hospital. The hospital uses a particular medical product more or less constant at 7871 units per year. You purchase the product from a supplier for $80.97 per unit. It costs about $11.4 per unit to store the produc..

  Show the influence on the optimal dividend policy

Myron Gordon and John Lintner believe that the re­quired return on equity increases as the dividend payout ratio is decreased. Their argument is based on the assumption

  Illustrate what items are included in the category of cash

Good accounting systems help in managing cash and controlling who has access to it. Illustrate what items are included in the category of cash?

  What were sunsets cash flows from operating activities

Sunset Acres reported net income of $58.0 million. Included in that number were trademark amortization expense of $2.7 million and a gain on the sale of land of $1.4 million. Records reveal decreases in accounts receivable, accounts payable, and inve..

  Weighted-average inventory valuation method

A company uses a process cost accounting system and the weighted-average inventory valuation method. Its Assembly Department's beginning inventory consisted of 50,000 units, three-fourths complete with respect to direct labor and overhead.

  Determine the best way for the company

Determine the best way for the company to obtain the funds needed which might be a single method or combination of methods.

  Service revenue earned on account

What kind of transaction is a service revenue earned on account

  Identify the reasons for any cost variations

Evaluate your ability to analyse and identify the reasons for any cost variations, and to communicate these variations to stakeholders.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd