Value$-$Stream Reporting with Inventory Decrease

Rivera Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot program. One of its value streams produces a family of small electric tools. The value$-$stream team

managers were quite excited about the results, as some of their efforts to eliminate waste were proving to be effective. During the most recent three weeks, the following data pertaining to the

electric tool value stream were collected:

Week I:

Demand$=110$ units @ $$45$

Beginning inventory $=5$ units @ $$20($ $$5$ materials and $$15$ conversion$)$

Production $=110$ units using $$450$ of materials and $$1,400$ of conversion cost

Week $2$:

Demand $=120$ units @ $$45$

Beginning inventory$=5$ units @ $$20($ $$5$ materials and $$15$ conversion$)$

Production $=110$ units using $$450$ of materials and $$1,400$ of conversion cost

Week $3$:

Demand $=110$ units @ $$45$

Beginning inventory $=0$

Production $=120$ units using $$650$ of materials and $$1,600$ of conversion cost