Container Shipping, Inc. is contemplating the use of process costing to track the cost of its operations

ACC 560 Week 2 Assignment

E3-14 Container Shipping, Inc. is contemplating the use of process costing to track the cost of its operations. The operation consists of three segments (departments): receiving, shipping, and delivery. Containers are received at Container's docks and sorted according to the ship they will be carried on. The containers are then loaded onto a ship, which carries them to the appropriate port of destination. The containers are then off-loaded and delivered to the receiving company. Container shipping wants to begin to use process costing in the shipping department. Direct materials represent the fuel costs to run the ship, and "Containers in transit" represents work in process. Listed below is information about the shipping department's first month's activity.

Containers in Transit April 1 0
Containers loaded 800
Containers in Transit April 30 350 40% of direct materials and
30% of conversion costs

Determine the physical flow of containers for the month
Compute the equivalent units for direct materials and conversion costs

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Durkee Corporation keeps careful track of the time required to fill orders

Durkee Corporation keeps careful track of the time required to fill orders. The times required for a particular order appear below:

Wait time........ Hours: 10.7
Process time......Hours: 0.9
Inspection time...... Hours: 0.4
Move time ...... Hours: 2.3
Queue time ...... Hours: 4.5

Required:
A.) Determine the throughput time. Show your work!
B.) Determine the manufacture cycle efficiency (MCE), show your work!
C.) Determine the delivery cycle time. Show your work!

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