Question 1

From the foregoing information,determine the production costs transferred to Finished Goods during August.

Accepted Answer

A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600 
A)  $369,840 
B)  $408,480 
C)  $428,800 
D)  $473,600

Question 2

Which of the following is an example of value-added time?

Accepted Answer

A)  Processing time 
B)  Wait time during inspection 
C)  Wait time in inventory 
D)  Both B and C 
A)  Processing time 
B)  Wait time during inspection 
C)  Wait time in inventory 
D)  Both B and C

Question 3

From the above schedule,calculate the external failure costs.

Accepted Answer

The answer of From the above schedule,calculate the external failure...

Question 4

From the above schedule of activity costs,determine the external failure costs.

Accepted Answer

A)  $39,000 
B)  $19,000 
C)  $12,000 
D)  $31,000 
A)  $39,000 
B)  $19,000 
C)  $12,000 
D)  $31,000

Question 5

Which of the following statements best describes the relationship among the costs of quality?

Accepted Answer

A)  Spending more on prevention and appraisal costs will reduce the total overall costs of quality. 
B)  Spending more on prevention and appraisal costs will increase the total overall costs of quality. 
C)  Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. 
D)  The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs. 
A)  Spending more on prevention and appraisal costs will reduce the total overall costs of quality. 
B)  Spending more on prevention and appraisal costs will increase the total overall costs of quality. 
C)  Adequate spending on prevention and appraisal costs will eliminate all internal and external failure costs. 
D)  The amount spent on prevention and appraisal costs has no impact on the amount spent on internal and external failure costs.

Question 6

The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours.Each unit produced by the cell requires 15 minutes of process time.During the month,3,800 units are manufactured in the cell.The estimated material cost is $18 per unit.Provide the following journal entries.
​
(a)Materials are purchased to produce 4,000 units.
(b)Conversion costs are applied to 3,800 units of production.(Please round to nearest cent.)
(c)3,650 units are placed into finished goods.

Accepted Answer

The answer of The Bright Lamp Company has budgeted its...

Question 7

____ manufacturing deals with several suppliers in hopes of finding the best price.

Accepted Answer

A)  Traditional 
B)  Lean 
C)  Economic 
D)  Productivity improvement 
A)  Traditional 
B)  Lean 
C)  Economic 
D)  Productivity improvement

Question 8

A nonfinancial measure is operating information that has not been translated into dollars.

Accepted Answer

A) True 
 B)False

Question 9

From the above schedule,calculate the internal failure costs.

Accepted Answer

The answer of From the above schedule,calculate the internal failure...

Question 10

Axelgold Company produces parts for the auto industry.Part X2 is machined in Department #1,which has the following budgeted conversion costs:
​
   All costs are driven by machine hours.Total possible hours for the year are 2,800.It takes .03 hours to machine one unit of Part X2.

Accepted Answer

The answer of Axelgold Company produces parts for the auto...

Question 11

The budgeted cell conversion cost rate includes which of the following?

Accepted Answer

A)  only factory overhead 
B)  only direct labor and direct materials 
C)  direct labor,direct materials,and factory overhead 
D)  only direct labor and factory overhead 
A)  only factory overhead 
B)  only direct labor and direct materials 
C)  direct labor,direct materials,and factory overhead 
D)  only direct labor and factory overhead

Question 12

A college would like to increase enrollment by streamlining the enrollment process.Which of the following would not fall in line with the college goal?

Accepted Answer

A)  Reduce the requirements necessary to enroll. 
B)  Relocate counselors,academic advisors,and financial aid specialists for a major to a central location. 
C)  Cross-train counselors,academic advisors,and financial aid specialists. 
D)  All of these choices would fall in line with the college goal. 
A)  Reduce the requirements necessary to enroll. 
B)  Relocate counselors,academic advisors,and financial aid specialists for a major to a central location. 
C)  Cross-train counselors,academic advisors,and financial aid specialists. 
D)  All of these choices would fall in line with the college goal.

Question 13

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is characteristic of the lean system?

Accepted Answer

A)  Fewer work in process account transactions. 
B)  Work in process and raw materials accounts combined. 
C)  Elimination of the direct labor account. 
D)  All of the above. 
A)  Fewer work in process account transactions. 
B)  Work in process and raw materials accounts combined. 
C)  Elimination of the direct labor account. 
D)  All of the above.

Question 15

From the above schedule of activity costs,determine the total activity cost.

Accepted Answer

A)  $62,000 
B)  $179,000 
C)  $94,000 
D)  $241,000 
A)  $62,000 
B)  $179,000 
C)  $94,000 
D)  $241,000

Question 16

Employee involvement in a product-oriented factory emphasizes employee teams,rather than individual employees.

Accepted Answer

A) True 
 B)False

Question 17

Conan Electronics Corporation manufactures and assembles electronic motor drives for video cameras.The company assembles the motor drives for several accounts.The process consists of a lean cell for each customer.The following information relates only to one customer's lean cell.For the year,planned labor and overhead was $80,000,000; materials costs,$25 per unit.Planned production included 9,600 hours to produce 76,800 motor drives.Actual production for the month of August was 5,200 units,and motor drives shipped amounted to 5,040 units.From the foregoing information,determine the budgeted cell conversion cost per hour.

Accepted Answer

A)  $8,025 
B)  $800 
C)  $7,200 
D)  $8,333 
A)  $8,025 
B)  $800 
C)  $7,200 
D)  $8,333

Question 18

Which of the following drives work-in-process inventory levels higher?

Accepted Answer

A)  Machine breakdowns 
B)  Production rate losses 
C)  Rework processes 
D)  All of the above 
A)  Machine breakdowns 
B)  Production rate losses 
C)  Rework processes 
D)  All of the above

Question 19

Costs of controlling quality include prevention costs and internal failure costs.

Accepted Answer

A) True 
 B)False

Question 20

Lead time reduction can be a cost-saving goal for any processed item.

Accepted Answer

A) True 
 B)False

Exam 26: Lean Manufacturing and Activity Analysis

From the foregoing information,determine the production costs transferred to Finished Goods during August.

Which of the following is an example of value-added time?

From the above schedule,calculate the external failure costs.

From the above schedule of activity costs,determine the external failure costs.

Which of the following statements best describes the relationship among the costs of quality?

____ manufacturing deals with several suppliers in hopes of finding the best price.

A nonfinancial measure is operating information that has not been translated into dollars.

From the above schedule,calculate the internal failure costs.

Axelgold Company produces parts for the auto industry.Part X2 is machined in Department #1,which has the following budgeted conversion costs: ​ All costs are driven by machine hours.Total possible hours for the year are 2,800.It takes .03 hours to machine one unit of Part X2.

The budgeted cell conversion cost rate includes which of the following?

A college would like to increase enrollment by streamlining the enrollment process.Which of the following would not fall in line with the college goal?

Financial accounting information is used more often for long-term operating decisions and nonfinancial information is used more often for day-to-day decisions.

Which of the following is characteristic of the lean system?

From the above schedule of activity costs,determine the total activity cost.

Employee involvement in a product-oriented factory emphasizes employee teams,rather than individual employees.

Which of the following drives work-in-process inventory levels higher?

Costs of controlling quality include prevention costs and internal failure costs.

Lead time reduction can be a cost-saving goal for any processed item.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters

Axelgold Company produces parts for the auto industry.Part X2 is machined in Department #1,which has the following budgeted conversion costs: All costs are driven by machine hours.Total possible hours for the year are 2,800.It takes .03 hours to machine one unit of Part X2.