Exam 15: Lean Principles and Accounting

Vell Inc. uses lean principles to reduce cycle time. Through production improvements the process time was reduced from 4.5 days to 2 days. Inspection time is 0.25 days. Strategic rearrangement of the production area reduced move time to 0.1 days. Wait time was 3 days, but due to improved scheduling and ordering has been reduced by 2.25 days. Total cycle time for Vell after the improvements is:

Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh started 38 wheelchairs and completed 35 wheelchairs. The beginning balance in work in process inventory is zero. The ending balance in work in process inventory is:

Alvi reports ending work in process inventory of $341 and cost of goods sold of $11,315. Compute days' sales in work in process inventory.

Which of the following statements is correct concerning the elements of cycle time?

Lean principles include all of the following except:

Greun Company has 11 days' sales in work in process inventory based on the current year's cost of goods sold of $11,680. What is Greun's work in process inventory?

Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh completed 35 wheelchairs and sold 32 wheelchairs. The ending balance in finished goods inventory is:

Kang Co. reports work in process inventory of $1,085 and cost of goods sold of $56,575. Days' sales in work in process inventory is:

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

The triple bottom line focus on the "planet" works to reduce waste by striving for:

Using the information below, compute cycle efficiency: Process time 6.0 hours Inspections time 0.5 hours Move time 0.6 hours Wait time 0.9 hours Storage time 72.0 hours

Only manufacturers use the lean business model.

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

Challenges of using push production include all of the following except:

A company reports ending accounts payable of $1,271 and cost of goods sold of $11,315. Compute days' payable outstanding.

Value streams include all activities needed to create customer value.

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?

A company reports ending accounts payable of $1,440 and cost of goods sold of $11,680. Compute days' payable outstanding.

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