Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 19, Problem 19.25E

1.

a.

To determine

To compute: Percentage of defective units shipped.

Given information:

Cell phones produced and shipped in 2016 are 2,500 units.

Number of defective units shipped in 2016 is 125 units.

b.

To determine

To compute: Customer complaints as a percentage of units shipped.

Given information:

Cell phones produced and shipped in 2016 are 2,500 units.

Number of customer complaints received in 2016 is 190 complaints.

c.

To determine

To compute: Percentage of units reworked during production.

Given information:

Cell phones produced and shipped in 2016 are 2,500 units.

Number of units reworked during production in 2016 is 150 units.

d.

To determine

To compute: Manufacturing cycle time as a percentage of total time from order to delivery.

Given information:

Manufacturing cycle time in 2016 is 13 days.

Average customer response time in 2016 is 28 days.

2.

To determine

To explain: Whether WCP’s quality and timeliness have improved.

Given information:

Manufacturing cycle time in 2016 is 13 days.

Average customer response time in 2016 is 28 days.

3.

To determine

To identify: Reasons for increase in manufacturing cycle time while customer response time decreased.

Given information:

Manufacturing cycle time in 2016 is 13 days.

Average customer response time in 2016 is 28 days.

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