Question: Joplin Industries Inc. manufactures and sells high-

> Why does lean accounting result in fewer transactions?

> How is supply chain management different from traditional supplier and customer relationships?

> Why would a lean manufacturer strive to produce zero defects?

> Why do lean manufacturers favor pull or “make to order” manufacturing?

> How is setup time related to lead time?

> Why is a product-oriented layout preferred by lean manufacturers over a process-oriented layout?

> What are some examples of non-value-added lead time?

> What is the benefit of the lean philosophy?

> A company is considering replacing an old piece of machinery, which cost $600,000 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $545,000. The old machine could be sold for $231,000. The annual varia

> Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Navo-Go Enterprises' stockholders’ equity accounts, with balances on January 1, 20Y1, are as follows: Common Stock, $5 stated value (900,000 shares authorized, 620,000 shares issu

> The following data relate to labor cost for production of 20,000 cellular telephones: Actual:…………………………..8,450 hrs. at $22.50 Standard:………………………8,400 hrs. at $23.00 A. Determine the direct labor rate variance, direct labor time variance, and total dire

> The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life: A. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. Use the tabl

> On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Children’s Shoes because it reduced income from operations by $17,000. What is the flaw in this decision, if it is assumed fixed

> Chinook Industries Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $900,000 and each with an eight-year life and expected total net cash flows of $1,000,000. Location 1 is expected to provide equal

> Nature’s Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 2,500 units at $60 each. The new manufacturing equipment will cost $227,000 and is ex

> Galactic Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 6,000 units at $250 per unit. The equipment has a cost of $850,000, residual value of

> Bunker Hill Mining Company has two competing proposals: a processing mill and an electric shovel. Both pieces of equipment have an initial investment of $750,000. The net cash flows estimated for the two proposals are as follows: The estimated residual

> Mill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows: Mill’s operations require all three grades to be melted in a furnace before being formed. The furnac

> Buckeye Healthcare Corp. is proposing to spend $186,725 on an eight-year project that has estimated net cash flows of $35,000 for each of the eight years. A. Compute the net present value, using a rate of return of 12%. Use the present value of an annuit

> Office Mart Inc. has “cash and carry” customers and credit customers. Office Mart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 30% pay their accounts in the month o

> Jocame Inc. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the mon

> Ethan Fromme, the Chief Financial Officer of Maximal Inc., has asked for your help in interpreting the company’s operating performance. He has provided you with the following three performance graphs for the most recent ï¬&#129

> Park City Mountain Resort , a Utah ski resort, announced a $415 million expansion of lodging properties, lifts, and terrain. Assume that this investment is estimated to produce $99 million in equal annual cash flows for each of th

> The internal rate of return method is used by Tester man Construction Co. in analyzing a capital expenditure proposal that involves an investment of $113,550 and annual net cash flows of $30,000 for each of the six years of its useful life. A. Determine

> Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile co

> Spanish Peaks Railroad Inc. is considering acquiring equipment at a cost of $1,250,000. The equipment has an estimated life of eight years and no residual value. It is expected to provide yearly net cash flows of $312,500. The company’s minimum desired r

> Strauss & C o. manufactures slacks and jeans under a variety of brand names, such as Dockers® and 501 Jeans®. Slacks and jeans are assembled by a variety of different sewing operations. Assume that the sales budget for Dockers a

> At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials…………………………$50,000 Direct labor………………………………….36,000 Total………………………………

> Carnival Corporation has recently placed into service some of the largest cruise ships in the world. One of these ships, the Carnival Breeze, can hold up to 3,600 passengers, and it can cost $750 million to build. Assume the following additional informat

> Coca Cola Enterprises is the largest bottler of Coca-Cola® in Western Europe. The company purchases Coke® and Sprite® concentrate from The Coca- Cola Company , dilutes and mixes the concentrate with carbonated water, and then fills the blended beverage i

> The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: Determine the expected average rate of return for each proposal. 3D Printer Truck Amount of investment $40,000 7 years $3,000 $24,080 $50

> Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $40 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 25% of direct

> The following data for Flexco Inc. relate to the payroll for the week ended December 9: Employees Grove and Seaver are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rat

> Charles Schwab Corporation is one of the more innovative brokerage and financial service companies in the United States. The company recently provided information about its major business segments as follows (in millions): A. How does a brokerage compa

> The condensed product-line income statement for Dish N’ Dat Company for the month of March is as follows: Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Dish N’ Dat

> A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales……………………………………………..$12,750,000 Cost of goods sold…………….……………….8,500,000 Gross profit………………………………….…$ 4,250,000 Operating

> On January 1, 20Y6, the controller of Omicron Inc. is planning capital expenditures for the years 20Y6–20Y9. The following interviews helped the controller collect the necessary information for the capital expenditures budget: Director of Facilities: A c

> Materials used by the Instrument Division of XPort Industries are currently purchased from outside suppliers at a cost of $210 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity a

> Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Smart Stream desires a profit equal to a 30% return on invested assets of $1,200

> Data for the North, South, East, and West divisions of Free Bird Company are as follows: A. Determine the missing items, identifying each by the letters (A) through (L). (Round percentages and investment turnover to one decimal place.) B. Determine the

> Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

> Calgary Lumber Company incurs a cost of $315 per hundred board feet (hbf) in processing certain “rough-cut” lumber, which it sells for $440 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $465 per hbf, which can be so

> Granite Construction Company is considering selling excess machinery with a book value of $175,000 (original cost of $315,000 less accumulated depreciation of $140,000) for $180,000, less a 5% brokerage commission. Alternatively, the machinery can be lea

> The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2018: Instructions: 1. Prepare a multiple-step income statement. 2. Prepare a retained earnings statement. 3. Prepare a bal

> XSport Sporting Goods Co. operates two divisions—the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 20Y9, the end of the fiscal year, after all adju

> Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 20Y7, are as follows: Tech Support Department…&

> The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used……………………………………3,000 lbs. Actual unit price of direct

> In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the

> Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor pe

> Alpha University wishes to monitor the efficiency and quality of its course registration process. A. Identify three input and three output measures for this process. B. Why would Alpha University use nonfinancial measures for monitoring this process?

> The actual and planned data for Underwater University for the Fall term were as follows: Registration, records, and marketing costs vary by the number of enrolled students, while instructional costs vary by the number of credit hours. Depreciation is a

> Based on XPort Industries’ data in Exercise 19, assume that a transfer price of $190 has been established and that 60,000 units of materials are transferred, with no reduction in the Components Division’s current sales. A. How much would XPort Industries

> Cloud Productivity Inc. uses flexible budgets that are based on the following data: Sales commissions .....................................................................................................14% of sales Advertising expense..................

> Cedar Springs Company completed the following selected transactions during June 20Y3: June 1. Established a petty cash fund of $1,000. 12. The cash sales for the day, according to the cash register records, totaled $9,440. The actual cash received from c

> American Express Company is a major financial services company, noted for its American Express® card. Some of the performance measures used by the company in its balanced scorecard follow: Average card member spending………………….Number of Internet features

> The following data relate to factory overhead cost for the production of 10,000 computers: If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the va

> Anticipated sales for Safety Grip Company were 42,000 passenger car tires and 19,000 truck tires. Rubber and steel belts are used in producing passenger car and truck tires as follows: The purchase prices of rubber and steel are $1.20 and $0.80 per pou

> Partially completed budget performance reports for Garland Company, a manufacturer of light duty motors, follow: A. Complete the budget performance reports by determining the correct amounts for the lettered spaces. B. Compose a memo to Cassandra Reid,

> La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of direct labor used…………………………….5,050 hrs. Actual rate for direct labor………………………….$16.80 per hr. Bic

> Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (3,128 pounds) has the following standards: The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual qua

> Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: The finished goods inventory estimated for October 1, for the Bath and Gym scale models is 18,000

> East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows: Operating statisti

> Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March………………………………………..$52,400 April…………………………………………….64,200 May……………………………………………..68,900

> The data related to Shunda Enterprises Inc.’s factory overhead cost for the production of 100,000 units of product are as follows: Productive capacity at 100% of normal was 130,000 hours, and the factory overhead cost budgeted at the

> Gen-X Ads Co. produces advertising videos. During the current year ending December 31, Gen-X Ads received the following notes: Instructions: 1. Determine for each note (A) the due date and (B) the amount of interest due at maturity, identifying each no

> The controller of MingWare Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget: Use the preceding information to prepare a cost of

> At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the sam

> Romano’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for September: There are three direct materials used in producing the two types of pizza. Th

> Based on the data in Exercise 7 and assuming that the average compensation per hour for staff is $45 and for partners is $140, prepare a professional labor cost budget for each department for Rollins and Cohen, CPAs, for the year ending December 31, 20Y8

> Rollins and Cohen, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 20Y8: Billable H

> On March 31, the end of the first month of operations, Sullivan Equipment Company prepared the following income statement, based on the variable costing concept: Prepare an income statement under absorption costing. Sullivan Equipment Company Varia

> Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Each department uses the average cost method. A. Determine the number of whole units to be accounted for and to be a

> Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May…………………………………………$134,000 June………………………………………….155,000 July……………………………………………169,000 All sales

> Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 35,000 barrels of oil for purchase in June for $90 per barrel. Direct labor budgeted in the chemical process was $240,000 for June. Factory overhead

> Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows: Both rackets are produced in two departments, Forming and Assembly. The direct labor hours

> The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $33,650 on July 31, 20Y5. Comparing the bank statement and the accompanying canceled checks and memos with the records reveals

> Ansara Company had the following abbreviated income statement for the year ended December 31, 20Y2: (in millions) Sales.................................................................................................. $18,769 Cost of goods sold.........

> Prior to the first month of operations ending October 31, Marshall Inc. estimated the Prior to the first month of operations ending October 31, Marshall Inc. estimated the Prior following operating results: Sales (40,000 × $90) .........................

> The following data were adapted from a recent income statement of Procter & Gamble Company: Assume that the variable amount of each category of operating costs is as follows: A. Based on the data given, prepare a variable costing income statement

> On November 30, the end of the first month of operations, Weatherford Company prepared the following income statement, based on the absorption costing concept: If the fixed manufacturing costs were $960,000 and the fixed selling and administrative expe

> On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Determine the unit cost of goods manufactur

> The management of East Coast Railroad Company introduced in Exercise 20 improved the profitability of the Atlanta/Baltimore route in May by reducing the price of a railcar from $600 to $500. This price reduction increased the demand for rail services. Th

> Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August: A. Prepare an income statement according

> Based on the data in Exercise 18 prepare a contribution margin analysis of the variable costs for Romero Products Inc. for the year ended December 31. Data from Exercise 18: The following data for Romero Products Inc. are available: Prepare an analys

> The following data for Romero Products Inc. are available: Prepare an analysis of the sales quantity and unit price factors. Difference- Increase or For the Year Ended December 31 Actual Planned (Decrease) Sales.... $8,360,000 $8,200,000 $ 160,000

> Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $31,875 from the planned level o

> The cash account for Collegiate Sports Co. on November 1, 20Y9, indicated a balance of $81,145. During November, the total cash deposited was $293,150, and checks written totaled $307,360. The bank statement indicated a balance of $112,675 on November 30

> The operating revenues of the three largest business segments for T i me War ner , I nc. , for a recent year follow. Each segment includes a number of businesses, examples of which are indicated in parentheses. Time Warner, Inc. Segment Revenues (in mil

> The marketing segment sales for Cater pillar, Inc., for a year follow: In addition, assume the following information: A. Use the sales information and the additional assumed information to prepare a contribution margin by segment report. Round to two

> Havasu Off-Road Inc. manufactures and sells a variety of commercial vehicles in the Northeast and Southwest regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following sal

> Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows: The sales unit v

> Power Train Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the Mountain Monster and Desert Dragon, from a single manufacturing facility. The manufacturing facility operates at 100% of capacity. The following per-unit inform

> Head Pops Inc. manufactures two models of solar-powered, noise-canceling headphones: Sun Sound and Ear Bling models. The company is operating at less than full capacity. Market research indicates that 28,000 additional Sun Sound and 30,000 additional Ear

> Winslow Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: In addition, you have determined the following information with respect to allocated fixed

> At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Direct materials…………………………………….$75 Direct labor……………………………………………..35 Fixed factory overhead……

> A. Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribution margin ratio for Young Company? B. If the contribution margin ratio for Martinez Company is 40%, sales were $34,800,00

> Select Foods Inc. uses activity-based costing to determine product costs. For each activity listed in the left column, match an appropriate activity base from the right column. You may use items in the activity-base list more than once or not at all.

> The unadjusted trial balance of Recessive Interiors at January 31, 2018, the end of the year, follows: The data needed to determine year-end adjustments are as follows: (A) Supplies on hand at January 31 are $2,850. (B) Insurance premiums expired durin

> Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced…………………………Total Costs 80,000………………………………

> Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 25,000 to 100,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedule,