Analysis of Production Activity at Jabari Steel Company’s Rolling Department in October

QUESTION

Jabari Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 33,900 tons from the Casting Department in October. During October, the Rolling Department completed 34,900 tons, including 3,000 tons of work in process on October 1. The ending work-in-process inventory on October 31 was 2,000 tons.

How many tons were started and completed during October?
fill in the blank 1 of 1 tons

ANSWER

Analysis of Production Activity at Jabari Steel Company’s Rolling Department in October

Introduction

Jabari Steel Company operates with two main departments: Casting and Rolling. The Casting Department supplies ingots, which are then processed into steel sheets in the Rolling Department. This essay delves into the production activities of the Rolling Department during October, focusing on the tons started and completed within the given timeframe.

Tons Received and Completed

In the month of October, the Rolling Department received a total of 33,900 tons from the Casting Department. This raw material serves as the basis for producing steel sheets. Over the course of the month, the Rolling Department successfully completed 34,900 tons of steel sheets. This completion encompasses both the tons carried forward from the previous month, work in process as of October 1 (which stood at 3,000 tons), and the additional tons that were started and completed during October.

Work-in-Process Inventory

A crucial aspect of understanding the production flow is the consideration of the work-in-process (WIP) inventory. On October 1, the Rolling Department had 3,000 tons of WIP inventory, representing steel sheets that were already in the process of being rolled but were not yet completed. Additionally, by the end of the month, on October 31, there were 2,000 tons of WIP inventory, indicating that some steel sheets were still undergoing the production process.

Tons Started and Completed Calculation

To determine the tons that were started and completed exclusively during October, we can follow this logic:

Tons completed during October = Total tons completed – (Tons carried forward from the previous month + Tons in WIP inventory on October 1) Tons completed during October = 34,900 – (3,000) = 31,900 tons

Tons started during October = Total tons received – (Tons carried forward from the previous month + Tons in WIP inventory on October 1 + Tons in WIP inventory on October 31) Tons started during October = 33,900 – (3,000 + 2,000) = 28,900 tons

Conclusion

In October, Jabari Steel Company’s Rolling Department saw a productive month, completing a total of 31,900 tons of steel sheets that were in process at the beginning of the month and starting an additional 28,900 tons of new production. This analysis provides insights into the dynamic production activities of the Rolling Department, highlighting the balance between the tons started, completed, and those remaining as work-in-process inventory at the end of the month.

 

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