Shorts 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 l: Demand = 90 units @ $40 Beginning inventory = 10 units @ $20 ($5 materials and $15 conversion) Production = 90 units using $450 of materials and $1,350 of conversion cost Week 2: Demand = 100 units @ $40 Beginning inventory = 10 units @ $20 ($5 materials and $15 conversion) Production = 90 units using $450 of materials and $1,350 of conversion cost Week 3: Demand = 90 units @ $40 Beginning inventory = 0 Production = 100 units using $500 of materials and $1,500 of conversion cost Required: 1. Prepare a traditional income statement for each week. Shorts Manufacturing, Inc. Traditional Income Statement Week 1 Week 2 Week 3 $fill in the blank c2994601b071ff5_2 $fill in the blank c2994601b071ff5_3 $fill in the blank c2994601b071ff5_4 fill in the blank c2994601b071ff5_6 fill in the blank c2994601b071ff5_7 fill in the blank c2994601b071ff5_8 Gross profit $fill in the blank c2994601b071ff5_9 $fill in the blank c2994601b071ff5_10 $fill in the blank c2994601b071ff5_11 2. Calculate the average value-stream product cost for each week. If required, round your answers to the nearest cent. Week 1 $fill in the blank dc598c0a6056013_1 per unit Week 2 $fill in the blank dc598c0a6056013_2 per unit Week 3 $fill in the blank dc598c0a6056013_3 per unit 3. Prepare a value-stream income statement for each week. Assume that any increase in inventory is valued at average cost. If an amount is zero, enter "0". Shorts Manufacturing, Inc. Value-Stream Income Statement Week 1 Week 2 Week 3 $fill in the blank 30c5b5ff3038f87_2 $fill in the blank 30c5b5ff3038f87_3 $fill in the blank 30c5b5ff3038f87_4 fill in the blank 30c5b5ff3038f87_6 fill in the blank 30c5b5ff3038f87_7 fill in the blank 30c5b5ff3038f87_8 fill in the blank 30c5b5ff3038f87_10 fill in the blank 30c5b5ff3038f87_11 fill in the blank 30c5b5ff3038f87_12 Value-stream profit $fill in the blank 30c5b5ff3038f87_13 $fill in the blank 30c5b5ff3038f87_14 $fill in the blank 30c5b5ff3038f87_15 fill in the blank 30c5b5ff3038f87_17 fill in the blank 30c5b5ff3038f87_18 fill in the blank 30c5b5ff3038f87_19 Gross profit $fill in the blank 30c5b5ff3038f87_20 $fill in the blank 30c5b5ff3038f87_21 $fill in the blank 30c5b5ff3038f87_22

Shorts 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 l: Demand = 90 units @ $40 Beginning inventory = 10 units @ $20 ($5 materials and $15 conversion) Production = 90 units using $450 of materials and $1,350 of conversion cost Week 2: Demand = 100 units @ $40 Beginning inventory = 10 units @ $20 ($5 materials and $15 conversion) Production = 90 units using $450 of materials and $1,350 of conversion cost Week 3: Demand = 90 units @ $40 Beginning inventory = 0 Production = 100 units using $500 of materials and $1,500 of conversion cost Required: 1. Prepare a traditional income statement for each week. Shorts Manufacturing, Inc. Traditional Income Statement Week 1 Week 2 Week 3 $fill in the blank c2994601b071ff5_2 $fill in the blank c2994601b071ff5_3 $fill in the blank c2994601b071ff5_4 fill in the blank c2994601b071ff5_6 fill in the blank c2994601b071ff5_7 fill in the blank c2994601b071ff5_8 Gross profit $fill in the blank c2994601b071ff5_9 $fill in the blank c2994601b071ff5_10 $fill in the blank c2994601b071ff5_11 2. Calculate the average value-stream product cost for each week. If required, round your answers to the nearest cent. Week 1 $fill in the blank dc598c0a6056013_1 per unit Week 2 $fill in the blank dc598c0a6056013_2 per unit Week 3 $fill in the blank dc598c0a6056013_3 per unit 3. Prepare a value-stream income statement for each week. Assume that any increase in inventory is valued at average cost. If an amount is zero, enter "0". Shorts Manufacturing, Inc. Value-Stream Income Statement Week 1 Week 2 Week 3 $fill in the blank 30c5b5ff3038f87_2 $fill in the blank 30c5b5ff3038f87_3 $fill in the blank 30c5b5ff3038f87_4 fill in the blank 30c5b5ff3038f87_6 fill in the blank 30c5b5ff3038f87_7 fill in the blank 30c5b5ff3038f87_8 fill in the blank 30c5b5ff3038f87_10 fill in the blank 30c5b5ff3038f87_11 fill in the blank 30c5b5ff3038f87_12 Value-stream profit $fill in the blank 30c5b5ff3038f87_13 $fill in the blank 30c5b5ff3038f87_14 $fill in the blank 30c5b5ff3038f87_15 fill in the blank 30c5b5ff3038f87_17 fill in the blank 30c5b5ff3038f87_18 fill in the blank 30c5b5ff3038f87_19 Gross profit $fill in the blank 30c5b5ff3038f87_20 $fill in the blank 30c5b5ff3038f87_21 $fill in the blank 30c5b5ff3038f87_22

Name: Shorts Manufacturing, Inc., has implemented lean manufacturing in its
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Shorts 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 so

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 10E: Shorts Manufacturing, Inc., has implemented lean manufacturing in its Kansas City plant as a pilot...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Week l:

Demand	= 90 units @ $40
Beginning inventory	= 10 units @ $20 ($5 materials and $15 conversion)
Production	= 90 units using $450 of materials and $1,350 of conversion cost

Week 2:

Demand	= 100 units @ $40
Beginning inventory	= 10 units @ $20 ($5 materials and $15 conversion)
Production	= 90 units using $450 of materials and $1,350 of conversion cost

Week 3:

Demand	= 90 units @ $40
Beginning inventory	= 0
Production	= 100 units using $500 of materials and $1,500 of conversion cost

Required:

1. Prepare a traditional income statement for each week.


Shorts Manufacturing, Inc.
Traditional Income Statement
	Week 1	Week 2	Week 3
	$fill in the blank c2994601b071ff5_2	$fill in the blank c2994601b071ff5_3	$fill in the blank c2994601b071ff5_4
	fill in the blank c2994601b071ff5_6	fill in the blank c2994601b071ff5_7	fill in the blank c2994601b071ff5_8
Gross profit	$fill in the blank c2994601b071ff5_9	$fill in the blank c2994601b071ff5_10	$fill in the blank c2994601b071ff5_11

2. Calculate the average value-stream product cost for each week. If required, round your answers to the nearest cent.

Week 1	$fill in the blank dc598c0a6056013_1 per unit
Week 2	$fill in the blank dc598c0a6056013_2 per unit
Week 3	$fill in the blank dc598c0a6056013_3 per unit

3. Prepare a value-stream income statement for each week. Assume that any increase in inventory is valued at average cost. If an amount is zero, enter "0".


Shorts Manufacturing, Inc.
Value-Stream Income Statement
	Week 1	Week 2	Week 3
	$fill in the blank 30c5b5ff3038f87_2	$fill in the blank 30c5b5ff3038f87_3	$fill in the blank 30c5b5ff3038f87_4
	fill in the blank 30c5b5ff3038f87_6	fill in the blank 30c5b5ff3038f87_7	fill in the blank 30c5b5ff3038f87_8
	fill in the blank 30c5b5ff3038f87_10	fill in the blank 30c5b5ff3038f87_11	fill in the blank 30c5b5ff3038f87_12
Value-stream profit	$fill in the blank 30c5b5ff3038f87_13	$fill in the blank 30c5b5ff3038f87_14	$fill in the blank 30c5b5ff3038f87_15
	fill in the blank 30c5b5ff3038f87_17	fill in the blank 30c5b5ff3038f87_18	fill in the blank 30c5b5ff3038f87_19
Gross profit	$fill in the blank 30c5b5ff3038f87_20	$fill in the blank 30c5b5ff3038f87_21	$fill in the blank 30c5b5ff3038f87_22

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.