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jarptica [38.1K]
2 years ago
13

There are 20 automatic turning machines in the lathe department. Batches of parts are machined in the department. Each batch con

sists of setup and run times. Batch size = 100 parts. The standard time to set up a machine for each batch is 5.0 hours. Four setup workers perform the setups. They each work 40 hours per week. Once a machine is set up, it runs automatically, with no worker attention until the batch is completed. Cycle time to machine each part = 9.0 min; thus, it takes 15 hours of run time to produce a batch. Assume all machines are perfectly reliable. What is the production output of the lathe department in 40 hours of operation per week?
Business
1 answer:
Semmy [17]2 years ago
5 0

Answer:

The capacity of the lathe department is 3200 parts/week. The workers capacity is the bottleneck.

Explanation:

In this case we have to compare the machine capacity and the worker capacity, and detecting shich one is limitating the capacity of the department.

Machine capacity

The time it takes for a machine to process a batch is

Time_{batch}=T_{setup} + T_{machining}=5+(9/60)*100=5+15=20 h

In 40-hour week, every machine can process 2 batches/week.

With 20 machines, the capacity of the department is 2*20=40 batch/week (4000 pcs/week).

Workers capacity

With 40-hour week and 5-hours setup, every worker can make (40/5)=8 setups a week.

If the department has 4 workers, the amount of setups that can be done is 4*8=32 setups/week. That means that only 32 batches can be processed per week (3200 pcs/week).

The workers resource is the limitating capacity, and therefore the capacity of the lathe department.

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1. Cash                                                          Debit    $ 47,000

 Accumulated Depreciation equipment   Debit  $ 40,800

 Gain on sale of equipment                       Credit                       $  11,000

 Equipment                                                  Credit                      $ 76,800

To record sale of equipment for $ 47,000 and gain on sale of $ 11,000

2. Cash                                                          Debit    $ 36,000

  Accumulated Depreciation equipment   Debit   $ 40,800

  Equipment                                                 Credit                          $ 76,800

To record sale of equipment for $ 36,000

3.  Cash                                                          Debit    $ 31,000

  Accumulated Depreciation equipment   Debit    $ 40,800

  Loss on sale of equipment                       Debit    $   5,000

  Equipment                                                  Credit                          $ 76,800                        

To record sale of equipment for $ 31,000 and loss on sale of $ 5,000

Explanation:

Computation of net book value

Cost of equipment                                                                             $ 76,800

Less: Accumulated depreciation                                                     $ 40,800

Net book value                                                                                  $ 36,000      

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In the third step, the equipment is sold for $ 31,000 and the differential  between the net book value and the sale proceeds is a loss and recorded as a debit in the accounting entry

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