Question

please answer this, the answer is number f

A manufacturing company is introducing a new product. This product requires five processes: A, B, C, D, and E in sequence. The equipment required for each process is available in the company now and is dedicated to the production of another type of products. Although some capacity is available on all the equipment types, management is not sure whether they need to buy additional pieces. To aid management in decision making, the following information is available: a. The five pieces of equipment--one for each type-are available 60% of the time. b. The company operates one shift per day (8 hours) and 250 days per year. C. The company decides to produce a new product with the remaining capacity. d. The time required for equipment setup, cleaning, and maintenance and scrap rate for each process. e. The demand for new product is expected to be 600,000 per year. Determine how many input and output units are required for each process. f. Determine whether the company can produce the new product with the available equipment. If not, how many pieces of each equipment must company purchase? Show your calculations. Time (in Min) A B Setup Time per setup per day 5015 40 Processing Time 0.20 0.12 0.10 0,15 Scarp rate (%) 20 10

sorry typo, number f is the question. please answer this number f

Answer 1

Steps for Process Costing

Follow the 5 steps for process costing.

1. Analyze inventory flow
2. Convert in-process inventory to equivalent units
3. Compute all applicable costs
4. Calculate the cost per unit of finished and in-process inventory
5. Allocate costs to units of finished and in-process inventory