Exam 19: Value-Based Systems- Abm and Lean

Both traditional and backflush costing have an account for __________ Inventory.

Typically,there are seven levels in the cost hierarchy.

Lean's primary goal is to eliminate waste in business processes.

For work done during August,Printing Press Company incurred direct materials costs of $151,000 and conversion costs of $250,000.The company employs a traditional operating philosophy.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,000 of costs,and the ending balance of the Finished Goods Inventory account was $3,000.There were no beginning inventory balances.How much was charged to the Cost of Goods Sold account during August?

Product throughput time refers to the amount of time that a product spends in a production cell.

In a just-in-time manufacturing environment,a flexible work cell is created by

Hugley Corp.recently installed three just-in-time work areas in its blank key-making division.The work areas will make large quantities of identical key blanks for door lock manufacturers.Select the best answer for how Hugley should run its business and account for product costs.

For a manufacturer,materials storage is a value-adding activity.

Ressano Manufacturing had the following transactions during March.There were no beginning inventory balances. a. Purchased $96,000 of direct materials, on account. b. Incurred direct labor costs, $83,000. c. Applied $88,000 of overhead to production. d. Completed units costing $252,000. e. Sold units costing $250,000. Using backflush costing, show the flow of costs using the T accounts below. Label each entry with the appropriate letter.

A bill of activities is useful for estimating a company's profits.