Managerial Accounting: Creating Value in a Dynamic Business Environment
11th Edition
ISBN: 9781259569562
Author: Ronald W Hilton Proffesor Prof, David Platt
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 5, Problem 63P
Better Bagels, Inc. manufactures a variety of bagels, which are frozen and sold in grocery stores. The production process consists of the following steps.
- 1. Ingredients, such as flour and raisins, are received and inspected. Then they are stored until needed.
- 2. Ingredients are carried on hand carts to the mixing room.
- 3. Dough is mixed in 40-pound batches in four heavy-duty mixers.
- 4. Dough is stored on large boards in the mixing room until a bagel machine is free.
- 5. A board of dough is carried into the bagel room. The board is tipped, and the dough slides into the hopper of a bagel machine. This machine pulls off a small piece of dough, rolls it into a cylindrical shape, and then squeezes it into a doughnut shape. The bagel machines can be adjusted in a setup procedure to accommodate different sizes and styles of bagels. Workers remove the uncooked bagels and place them on a tray, where they are kept until a boiling vat is free.
- 6. Next the trays of uncooked bagels are carried into an adjoining room, which houses three 50-gallon vats of boiling water. The bagels are boiled for approximately one minute.
- 7. Bagels are removed from the vats with a long-handled strainer and placed on a wooden board. The boards full of bagels are carried to the oven room, where they are kept until an oven rack is free. The two ovens contain eight racks which rotate but remain upright, much like the seats on a Ferris wheel. A rack full of bagels is finished baking after one complete revolution in the oven. When a rack full of bagels is removed from the oven, a fresh rack replaces it. The oven door is opened and closed as each rack completes a revolution in the oven.
- 8. After the bagels are removed from the oven, they are placed in baskets for cooling.
- 9. While the bagels are cooling, they are inspected. Misshapen bagels are removed and set aside. (Most are eaten by the staff.)
- 10. After the bagels are cool, the wire baskets are carried to the packaging department. Here the bagels are dumped into the hopper on a bagging machine. This machine packages a half-dozen bagels in each bag and seals the bag with a twist tie.
- 11. Then the packaged bagels are placed in cardboard boxes, each holding 24 bags. The boxes are placed on a forklift and are driven to the freezer, where the bagels are frozen and stored for shipment.
Required:
- 1. Identify the steps in the bagel-production process that fall into each of the following categories: process time, inspection time, move time, waiting time, storage time.
- 2. List the steps in the production process that could be candidates for non-value-added activities.
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Tasty Bread makes and supplies bread throughout the state of Kansas. Three types of bread are produced: loaves, rolls, and buns. Seven operations describe the production process.
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Mixing: Flour, milk, yeast, salt, butter, and so on, are mixed in a large vat.
Shaping: A conveyor belt transfers the dough to a machine that weighs it and shapes it into loaves, rolls, or buns, depending on the type being produced.
Rising: The individually shaped dough is allowed to sit and rise.
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Cooling: The bread is removed from the oven and allowed to cool.
Slicing: For loaves and buns (hamburger and hot dog), the bread is sliced.
Packaging: The bread is wrapped (packaged).
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Tasty produces its products in batches. The size of the batch depends on the individual orders that must be filled (orders come from retail grocers throughout the state). Usually, as…
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direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are
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Chapter 5 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
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