ADM 2341 Lecture Notes - Lean Manufacturing, Value Chain, Value Engineering

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bronzeyak402

18 Feb 2014

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=pohr x amount of cost allocation activity used. Service companies: in business to sell intangible services. Merchandising companies: resell tangible products they buy from suppliers. Value chain: the activities that add value to the company"s goods and services. Direct cost: a cost that can be easily traced to the cost object. Indirect cost: a cost that is related to the cost object but cannot be directly related to it. Activity-based management (abm) refers to using activity-based cost information to make decisions that increase profits while satisfying customers" needs. Sarbanes-oxley act of 2002: american legislation requiring a company"s ceo and cfo to assume responsibility. Xlbr: enables companies to release financial and business information in a format that can be quickly, efficiently, and cost-effectively accessed, sorted, and analyzed over the internet. Lean production: the philosophy of manufacturing without waste. Total costs: includes the costs of all resources used throughout the value chain.

Related Questions

Problem 2

Smith Carlson Corporation provided the following list of costdata to its manufacturing operations for the month of October20X5.

Beginning raw materials inventory	2,416,000
Raw materials purchased (net)	5,863,750
Ending raw materials inventory	2,045,500
Direct labor costs	805,750
Indirect materials	313,750
Indirect labor	222,250
Factory utilities and maintenance	1,140,000
Factory depreciation	141,500
Other factory relatedoverhead	61,000
Beginning work in process	1,942,500
Ending work in process	1,792,500

Arrange the cost data into a statement of cost of goodsmanufactures.

If Smith Carlson Corporation cost of goods sold for the monthwas $10,000,000, how much was the increase or decrease in finishedgoods inventory for the month of October

WORKSHEET #2

SMITH CARLSON CORPORATION
SCHEDULE OF COST OF GOODS MANUFACTURED
For the month ending October 31, 20X5

Direct materials:
	$ -
	-
	$ -
	-
Raw materials transferred to production		$ -
Direct labor		-
Factory overhead
	$ -
	-
	-
	-
	-	-
Total manufacturing costs		$ -
		-
		$ -
		-
Cost of goods manufactured		$ -

periwinklewhale348

Zachary Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). AI manufactures a wireless modem that enables users to access the Internet through cell phones. The following trial balance was drawn from the accounts of the subsidiary:


Cash	$	184,600
Raw materials inventory		3,680
Work in process inventory		5,530
Finished goods inventory		6,450
Common stock			$	119,060
Retained earnings				81,200
Totals	$	200,260	$	200,260

The subsidiary completed the following transactions during 2017:

1. Paid $55,380 cash for direct raw materials.

2. Transferred $46,160 of direct raw materials to work in process.

3. Paid production employees $73,860 cash.

4. Applied $48,910 of manufacturing overhead costs to work in process.

5. Completed work on products that cost $150,410.

6. Sold products that cost $131,950 for $167,950 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.

7. Paid $18,450 cash for selling and administrative expenses.

8. Actual overhead costs paid in cash amounted to $50,710.

9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).

10. Made a $4,580 cash distribution to the owners

REQUIRED

A. Prepare a schedule of cost of goods manufactured and sold.

ANYWHERE, INC.
Schedule of Cost of Goods Manufactured and Sold
For Year Ended December, 31 2017
Beginning raw materials inventory
Purchases
Raw materials available for use	0
Ending raw materials inventory
Direct raw materials used	0
Direct labor
Manufacturing overhead
Total manufacturing costs	0
Beginning work in process inventory
Total work in process inventory	0
Ending work in process inventory
Cost of goods manufactured	0
Beginning finished goods inventory
Cost of goods available for sale	0
Ending finished goods inventory
Cost of goods sold	$0

coffeegoose683

Using the below financial statements, determine certainnumber of variable costs and a fixed costs for the month of Dec.2016 and calculate the following:

Breakeven point in units

Breakeven point in $S

Assume a target income and determine how many units you need tosell in order to make your target income.

LINDSEYâS LIP SETS

Schedule of Cost of Goods Manufactured

For the Year Ending December 31, 2016

Direct Materials:
	Beginning Raw Materials Inventory, Jan. 1	$100,000
	Plus: Net purchases of raw material	$200,000
	Raw materials available	$300,000
	Less: Ending raw materials inventory, Dec. 31	$150,000
	Raw materials transferred to production		$150,000
	Direct Labor		$200,000
Manufacturing Overhead
	Indirect materials	$10,000
	Indirectlabor	$45,000
	FactoryDepreciation	$10,000	$65,000
Total manufacturing costs			$415,000
Beginning work in process inventory Jan.1			$50,000
Cost of goods manufactured			$530,000
Less: Ending work in process inventory, Dec. 31			$2,000
Cost of goods manufactured			$528,000

LINDSEYâS LIP SETS

Schedule of Cost of Goods Sold

For the Year Ending December 31 2016

Beginning finished goods inventory, Jan. 1	$20,000
Plus: Cost of goods manufactured	$528,000
Goods available forsale	$548,000
Less: Finished goods inventory, Dec. 31	$10,000
Cost of goodssold	$538,000

LINDSEYâS LIP SETS

Income Statement

For the Year Ending December 31 2016

Sales			$3,200,000
Cost of goods sold			$538,000
Gross profit			$2,662,000
Operating expenses
	Online shop selling	$24,000
	General administrative	$10,000	$34,000
Net income			$2,628,000

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ADM 2341 Lecture Notes - Lean Manufacturing, Value Chain, Value Engineering

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