Exam 27: Lean Principles and Accounting

Beake Company has 15 days' sales in work in process inventory based on the current year's cost of goods sold of $11,315.What is Beake's work in process inventory?

Haupt Inc.manufacturers water pumps.Each pump requires $155 of raw materials and $315 of conversion costs.Each pump is sold for $725.Last month Haupt produced and sold 69 pumps.The journal entry to record cost of goods sold would include:

Haupt Inc.manufacturers water pumps.Each pump requires $155 of raw materials and $315 of conversion costs.Each pump is sold for $725.Last month Haupt produced and sold 69 pumps.The journal entry to apply conversion costs to production would include:

Vista Company's has 32 days' payable outstanding based on the current year's cost of goods sold of $11,315.What is Vista's balance in accounts payable?

If accounts payable is $1,116 and cost of goods sold is $11,315,what is days' payable outstanding?

Only manufacturers use the lean business model.

Value streams include all activities needed to create customer value.

If work in process inventory is $900 and cost of goods sold is $16,425,what is days' sales in work in process inventory?

Days' payable outstanding measures how long,on average,a company takes to pay its creditors.

Work in process inventory reflects a delay in getting products to customers,which is considered wasteful by lean businesses.