Question: 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-Stream Reporting with Inventory Decrease Rivera Manufacturing, Inc., has implemented lean manufacturingin its Kansas City plant as a pilot program. One of itsvalue streams produces a family of small electric tools. The value-stream team

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 1: Demand 110 units $55 Beginning inventory 5 units $20 ($5 materials and $15 conversion) Week 2: Production 110 units using $400 of materials and $1,350 of conversion cost Demand 120 units $55 Beginning inventory= 5 units $20 ($5 materials and $15 conversion) Week 3: Production 110 units using $400 of materials and $1,350 of conversion cost Demand 110 units $55 Beginning inventory= 0 Production 120 units using $550 of materials and $1,700 of conversion cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!