Accounting Problem 5-63

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Ora Crossley ------------------------------------------------- Problem 5-63 Bodacious Bagels, Inc. manufactures a variety of bagels, which are frozen and sold in grocery stores. The production process consists of the following steps. Question #1 | Question #2 | Steps (Non-Value added activities in Red) | InspectionStorage | Non Value add | 1. Ingredients, such as flour and raisins, are received and inspected. Then they are stored until needed. | Move | Non Value add | 2. Ingredients are carried on hand carts to the mixing room. | Process | | 3. Dough is mixed in 40-pound batches in four heavy-duty mixers. | Waiting | Non Value add | 4. Dough is stored on large boards in the mixing room until a bagel machine is free. | ProcessMoveWaiting | Non Value add | 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. | ProcessMove | Non Value add | 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. | ProcessMoveWaiting | Non Value add | 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
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