Question 1

Schedule of Activity Costs  From the above schedule of activity costs, determine the appraisal costs.

Accepted Answer

A)  $50,000 
B)  $23,000 
C)  $73,000 
D)  $104,000 
A)  $50,000 
B)  $23,000 
C)  $73,000 
D)  $104,000

Question 2

A just-in-time non-manufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Accepted Answer

A) True 
 B)False

Question 3

Accounting for just-in-time operations requires fewer transactions because

Accepted Answer

A)  large batches of inventory are combined in a smaller number of transactions. 
B)  costs are accumulated in one department and then transferred to the next department. 
C)  combined material and conversion costs are transferred to finished goods. 
D)  costs are transferred from department to department allowing for better controls in costs. 
A)  large batches of inventory are combined in a smaller number of transactions. 
B)  costs are accumulated in one department and then transferred to the next department. 
C)  combined material and conversion costs are transferred to finished goods. 
D)  costs are transferred from department to department allowing for better controls in costs.

Question 4

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 5

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is characteristic of the just-in-time 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 7

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

Accepted Answer

A) True 
 B)False

Question 8

In a just-in-time (JIT) system, the work in process and raw materials inventory accounts are combined.

Accepted Answer

A) True 
 B)False

Question 9

A setup is the time required to prepare an operation for a new production run.

Accepted Answer

A) True 
 B)False

Question 10

Just-in-Time (JIT) manufacturing is also called make-to-order manufacturing.

Accepted Answer

A) True 
 B)False

Question 11

Maximum effectiveness and efficiency are reached when the just-in-time (JIT) philosophy is used by both manufacturers and their suppliers.

Accepted Answer

A) True 
 B)False

Question 12

In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is characteristic of the traditional cost system?

Accepted Answer

A)  Many work in process account transactions. 
B)  Reliance on financial performance measures. 
C)  Many process control points. 
D)  All of the above. 
A)  Many work in process account transactions. 
B)  Reliance on financial performance measures. 
C)  Many process control points. 
D)  All of the above.

Question 14

In a just-in-time (JIT) system, there are more transactions to record than there are in a traditional system.

Accepted Answer

A) True 
 B)False

Question 15

Sifton 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 just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. From the foregoing information, determine the budgeted cell conversion cost per unit.

Accepted Answer

A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,842.50 
A)  $240.00 
B)  $268.00 
C)  $296.00 
D)  $1,842.50

Question 16

The Kwanika Co. operates in a just-in-time (JIT) manufacturing environment. During 2011, its first year of operations, Kwanika budgeted for 40,000 hours in the production of 100,000 units in its cell X-22. Material costs were $7 per unit. Cell X-22 conversion costs were budgeted for the year as follows:
   During January, material for 8,400 units was purchased on account. There were 8,200 units manufactured and 8,000 were sold shipped to customers for $35 each. Journalize: (a) the material purchases; (b) the application of conversion costs; (c) the transfer from work in process to finished goods; and (d) the sales and associated cost of goods sold for the month of January.

Accepted Answer

(a)
 @#IMG-DLM& (b)

Question 17

Which of the following is (are) objective(s) of just-in-time (JIT) manufacturing?

Accepted Answer

A)  eliminating waste 
B)  increasing inventory levels 
C)  increased number of inspections 
D)  all of the above 
A)  eliminating waste 
B)  increasing inventory levels 
C)  increased number of inspections 
D)  all of the above

Question 18

Just-in-Time (JIT) manufacturing focuses on reducing time, cost, and poor quality in processes.

Accepted Answer

A) True 
 B)False

Question 19

Schedule of Activity Costs
   From the above schedule, calculate the (a) value-added and (b) non-value-added costs.

Accepted Answer

(a) $179,000 = $55,000 + $26,0

Question 20

Schedule of Activity Costs  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

Exam 27: Cost Management for Just-In-Time Environments

Schedule of Activity Costs From the above schedule of activity costs, determine the appraisal costs.

A just-in-time non-manufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

Accounting for just-in-time operations requires fewer transactions because

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

In a pull manufacturing system, raw materials are released to production based on actual customer orders.

Which of the following is characteristic of the just-in-time system?

In a just-in-time (JIT) environment, the journal entry to record raw materials purchases would include a debit to the raw and in process inventory account.

In a just-in-time (JIT) system, the work in process and raw materials inventory accounts are combined.

A setup is the time required to prepare an operation for a new production run.

Just-in-Time (JIT) manufacturing is also called make-to-order manufacturing.

Maximum effectiveness and efficiency are reached when the just-in-time (JIT) philosophy is used by both manufacturers and their suppliers.

In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment.

Which of the following is characteristic of the traditional cost system?

In a just-in-time (JIT) system, there are more transactions to record than there are in a traditional system.

Which of the following is (are) objective(s) of just-in-time (JIT) manufacturing?

Just-in-Time (JIT) manufacturing focuses on reducing time, cost, and poor quality in processes.

Schedule of Activity Costs From the above schedule, calculate the (a) value-added and (b) non-value-added costs.

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

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

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