Exam 22: Activity-Based Systems-Abm and Lean

A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A product-level activity is

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Question 21

Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: Direct materials purchased on account and used 26,815 Parts purchased on account and used 19,320 Direct labor costs incurred 17,000 Overhead costs applied 59,400 Cost of goods completed during February 119,635 Ending work in process inventory 2,900 Ending finished goods inventory 1,850 a. Using T accounts and traditional costing, show the flow of costs. $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ b. Using T accounts and a backflush costing system, show the flow of costs. $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ $Smith and Hodges produce notions for the clothing industry. It uses four work cells for its four product lines. Just-in-time operations and costing methods have recently been adopted. A overhead rate of $9.50 per machine hour is applied to work cell #2. There were no beginning inventories on February 1. Operating costs for February for work cell #2 are as follows: \begin{array}{|lr|} \hline \text { Direct materials purchased on account and used } & 26,815 \\ \text { Parts purchased on account and used } & 19,320 \\ \text { Direct labor costs incurred } & 17,000 \\ \text { Overhead costs applied } & 59,400 \\ \text { Cost of goods completed during February } & 119,635 \\ \text { Ending work in process inventory } & 2,900 \\ \text { Ending finished goods inventory } & 1,850 \\ \hline \end{array} a. Using T accounts and traditional costing, show the flow of costs. b. Using T accounts and a backflush costing system, show the flow of costs. c. What is the total cost of goods sold for the month of February?$ c. What is the total cost of goods sold for the month of February?

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Question 22

Cost traceability is decreased in a just-in-time operating environment.

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Question 23

The value chain is also called the supply network.

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Question 24

In a just-in-time environment, more quality control inspectors are needed because of the high speed of production.

(True/False)

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Question 25

A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A batch-level activity is

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Question 26

Nonvalue-adding activities are

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Question 27

The initial step in achieving the efficiency of a just-in-time system is to

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Question 28

When managing the production process in a just-in-time environment, the manager's focus is on throughput time.

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Question 29

For work done during August, Printing Press Company incurred direct materials costs of $101,000 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?

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Question 30

For work done during August, Printing Press Company incurred direct materials costs of $130,000 and conversion costs of $221,000. 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 cost of goods manufactured during August?

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Question 31

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

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Question 32

Why is process value analysis not part of the general ledger accounting system?

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Question 33

A change to just-in-time manufacturing expands mainly the role of the

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Question 34

A value chain involves a sequence of value-creating activities within an organization.

(True/False)

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Question 35

In order for a manager to reduce throughput time, it is necessary for the accounting system to focus on calculating units produced per direct labor hour.

(True/False)

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Question 36

Activity-based costing applies only to production-related activities.

(True/False)

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Question 37

The time a product spends waiting to be worked on is called storage time.

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Question 38

When using a just-in-time system, what qualities should be used to evaluate a supplier?

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Question 39

Maintaining consistent high product quality

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Question 40

Showing 21 - 40 of 152

Exam 22: Activity-Based Systems-Abm and Lean

A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A product-level activity is

Cost traceability is decreased in a just-in-time operating environment.

The value chain is also called the supply network.

In a just-in-time environment, more quality control inspectors are needed because of the high speed of production.

A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A batch-level activity is

Nonvalue-adding activities are

The initial step in achieving the efficiency of a just-in-time system is to

When managing the production process in a just-in-time environment, the manager's focus is on throughput time.

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

Why is process value analysis not part of the general ledger accounting system?

A change to just-in-time manufacturing expands mainly the role of the

A value chain involves a sequence of value-creating activities within an organization.

In order for a manager to reduce throughput time, it is necessary for the accounting system to focus on calculating units produced per direct labor hour.

Activity-based costing applies only to production-related activities.

The time a product spends waiting to be worked on is called storage time.

When using a just-in-time system, what qualities should be used to evaluate a supplier?

Maintaining consistent high product quality

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

The Changing Business Environment-A Managers Pers

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

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