Managerial Accounting
14th Edition
ISBN: 9781337270595
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 12, Problem 21E
a)
To determine
Process Activity: Process activity refers to the various of activities involved in the process of production.
Process Activity Analysis: Process activity analysis refers to the analysis of the various processes involved in the production process.
To Develop: A table showing percentage of individual activity cost to total
b)
To determine
The average process cost per payment.
c)
To determine
To Prepare: A table showing changes in the activity cost due to the proposed improvements which also shows the changes before improvement of activity cost.
d)
To determine
The average process cost per payment.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
10.
Process Activity Analysis
The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials request form to the Purchasing Department. The Purchasing Department then places a request for a quote to vendors. Vendors prepare bids in response to the request for a quote. A vendor is selected based on the lowest bid. A purchase order to the low-bid vendor is prepared. The vendor delivers the materials to the company, whereupon a receiving ticket is prepared. Payment to the vendor is authorized if the materials request form, receiving ticket, and vendor invoice are in agreement. These three documents fail to agree 50% of the time, initiating effort to reconcile the differences. Once the three documents agree, a check is issued. The process can be diagrammed as follows:
An activity analysis indicated the…
The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials request form to the Purchasing Department. The Purchasing Department then places a request for a quote to vendors. Vendors prepare bids in response to the request for a quote. A vendor is selected based on the lowest bid. A purchase order to the low-bid vendor is prepared. The vendor delivers the materials to the company, whereupon a receiving ticket is prepared. Payment to the vendor is authorized if the materials request form, receiving ticket, and vendor invoice are in agreement. These three documents fail to agree 40% of the time, initiating effort to reconcile the differences. Once the three documents agree, a check is issued. The process can be diagrammed as follows:
An activity analysis indicated the following activity costs with…
You have determined that the purchases system operates as follows: • When materials are required for production, the production manager sends a handwritten note to the buying manager. For orders of other items, the department manager or managing director sends a handwritten note to the buying manager. The buying manager finds a suitable supplier and raises a purchase order. The purchase orders are signed by the managing director. Purchase orders are not issued for all goods and services received by the company.• Materials for production are received by the Goods Received Department, who issue a goods received note (GRN), and sends a copy to the accounts clerk. There is no system for recording receipt of other goods and services.• The accounts clerk receives the purchase invoice and matches it with goods received notes and purchase order (if available). The managing director authorises the invoice for posting to the purchase ledger.• The accounts clerk analyses the invoice into relevant…
Chapter 12 Solutions
Managerial Accounting
Ch. 12 - What is the benefit of the lean philosophy?Ch. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Why would a lean manufacturer strive to produce...Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 1BECh. 12 - Prob. 2BECh. 12 - Prob. 3BECh. 12 - Prob. 4BECh. 12 - Prob. 5BECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Calculate lead time Williams Optical Inc. is...Ch. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Lean accounting Modern Lighting Inc. manufactures...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Process activity analysis The Brite Beverage...Ch. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Lean accounting Dashboard Inc. manufactures and...Ch. 12 - Prob. 4PACh. 12 - Prob. 1PBCh. 12 - Lead time Master Chef Appliance Company...Ch. 12 - Lean accounting Com-Tel Inc. manufactures and...Ch. 12 - Pareto chart and cost of quality report for a...Ch. 12 - Prob. 1ADMCh. 12 - Prob. 2ADMCh. 12 - Prob. 3ADMCh. 12 - Ethics in Action In August, Lannister Company...Ch. 12 - Prob. 3TIF
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The conversion cycle of the company is triggered by a report from the warehouse. When the quantity of an inventory item falls below a pre-set minimum level, the warehouse manager sends an online inventory status report to the production department advising them to schedule a production batch run for the item. Upon receipt of the report, the production clerk assesses the digital bill of materials and the route sheet files for the item to be produced and adds the production details to the online production schedule. The system automatically adds a record to the openwork order file and sends an online work order to the work center supervisor’s computer and to the accounting clerk’s computer. The work center supervisor receives the work order from his computer and print hard-copy move tickets and materials requisitions for each production process. Production employees take the materials requisitions to store clerk and receive the materials and subassemblies needed to perform the production…arrow_forwardThe conversion cycle of the company is triggered by a report from the warehouse. When the quantity of an inventory item falls below a pre-set minimum level, the warehouse manager sends an online inventory status report to production department advising them to schedule a production batch run for the item.Upon receipt of the report, the production clerk assesses the digital bill of materials and the route sheet files for the item to be produced and adds the production details to the online production schedule.The system automatically adds a record to the open work order file and sends an online work order to the work centre supervisor’s computer and to the accounting clerk’s computer.The work centre supervisor receives the work order from his computer and print hard-copy move tickets and materials requisitions for each production process. Production employees take the materials requisitions to store clerk and receives the materials and subassemblies needed to perform the production…arrow_forwardProcess Activity Analysis The procurement process for Jarom Wholesale Company includes a series of activities that transforms a materials requisition into a vendor payment. The process begins with a request for materials. The requesting department prepares and sends a materials request form to the Purchasing Department. The Purchasing Department then places a request for a quote to vendors. Vendors prepare bids in response to the request for a quote. A vendor is selected based on the lowest bid. A purchase order to the low-bid vendor is prepared. The vendor delivers the materials to the company, whereupon a receiving ticket is prepared. Payment to the vendor is authorized if the materials request form, receiving ticket, and vendor invoice are in agreement. These three documents fail to agree 40% of the time, initiating effort to reconcile the differences. Once the three documents agree, a payment is made. The process can be diagrammed as follows: An activity analysis indicated the…arrow_forward
- The following is a description of the conversion cycle of Central Production Limited:The conversion cycle of the company is triggered by a report from the warehouse. When the quantityof an inventory item falls below a pre-set minimum level, the warehouse manager sends an onlineinventory status report to production department advising them to schedule a production batch runfor the item.Upon receipt of the report, the production clerk assesses the digital bill of materials and the routesheet files for the item to be produced and adds the production details to the online productionschedule.The system automatically adds a record to the open work order file and sends an online work orderto the work centre supervisor’s computer and to the accounting clerk’s computer.The work centre supervisor receives the work order from his computer and print hard-copy movetickets and materials requisitions for each production process. Production employees take thematerials requisitions to store clerk and…arrow_forwardThe following is a description of the conversion cycle of Central Production Limited:The conversion cycle of the company is triggered by a report from the warehouse. When the quantityof an inventory item falls below a pre-set minimum level, the warehouse manager sends an onlineinventory status report to production department advising them to schedule a production batch runfor the item.Upon receipt of the report, the production clerk assesses the digital bill of materials and the routesheet files for the item to be produced and adds the production details to the online productionschedule.The system automatically adds a record to the openwork order file and sends an online work orderto the work center supervisor’s computer and to the accounting clerk’s computer.The work center supervisor receives the work order from his computer and print hard-copy movetickets and materials requisitions for each production process. Production employees take thematerials requisitions to store clerk and…arrow_forwardThe following is a description of the conversion cycle of Central Production Limited:The conversion cycle of the company is triggered by a report from the warehouse. When the quantity of an inventory item falls below a pre-set minimum level, the warehouse manager sends an onlineinventory status report to production department advising them to schedule a production batch run for the item.Upon receipt of the report, the production clerk assesses the digital bill of materials and the route sheet files for the item to be produced and adds the production details to the online production schedule.The system automatically adds a record to the open work order file and sends an online work order to the work centre supervisor’s computer and to the accounting clerk’s computer.The work centre supervisor receives the work order from his computer and print hard-copy move tickets and materials requisitions for each production process. Production employees take the materials requisitions to store…arrow_forward
- Ohio Logistics manages the logistical activities for firms by matching companies that need products shipped with carriers that can provide the best rates and best service for the companies. Ohio Logistics is very concerned that its carriers deliver their customers material on time, so it carefully monitors the percentage of on-time deliveries. The following table contains a list of the carriers used by Ohio Logistics and the corresponding on-time percentages for the current and previous years. a. Sort the carriers in descending order by their current years percentage of on-time deliveries. Which carrier is providing the best service in the current year? Which carrier is providing the worst service in the current year? b. Calculate the change in percentage of on-time deliveries from the previous to the current year for each carrier. Use Excels conditional formatting to highlight the carriers whose on-time percentage decreased from the previous year to the current year. c. Use Excels conditional formatting tool to create data bars for the change in percentage of on-time deliveries from the previous year to the current year for each carrier calculated in part b. d. Which carriers should Ohio Logistics try to use in the future? Why?arrow_forwardGENERAL MANUFACTURING INC.—INTERNAL CONTROLS ASSESSMENT (MANUAL SYSTEM WITH STAND ALONE PC SUPPORT) The production process at General Manufacturing, Inc., involves the planning, scheduling, and controlling of the physical products through the manufacturing process. General’s manufacturing process begins in the production planning and control department, where the clerk determines the materials and operations requirements based on the marketing department sales forecast and the inventory status report from the storeroom. The clerk reviews this information and prepares a hardcopy purchase requisition, which she sends to the purchasing department. From her department PC the clerk then accesses the bill of materials and route sheets files and prints the following hard copy documents: work orders, move tickets, and materials requisitions. Three copies of each document are prepared. One copy of the work order, move ticket, and materials requisitions document are sent to cost accounting. The…arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Cost Accounting - Definition, Purpose, Types, How it Works?; Author: WallStreetMojo;https://www.youtube.com/watch?v=AwrwUf8vYEY;License: Standard YouTube License, CC-BY