Managerial Accounting
6th Edition
ISBN: 9781259726972
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter C, Problem 3E
To determine
Concept introduction:
Lean Accounting:
Lean accounting refers to the modern time accounting system which helps in maintaining accounting data in much comparative manner. In other words, we can say that lean accounting system focus on the maximization of recording efficiency through gathering useful & comparative accounting information. This system focuses on the elimination of waste in the process and on meeting the needs of the customers.
Journal entries to record transactions.
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(Round the per unit cost to the nearest cent and use in subsequent computations. If required, round your answers to the nearest dollar.)
Journalize the following entries for the month:
a. Materials are purchased to produce 1,560 units.
b. Conversion costs are applied to 1,480 units of production.
c. The cell completes 1,410 units, which are placed into finished goods.
If an amount box does not require
an
entry, leave it blank.
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intr-amprogress=false
Lean Accounting
The annual budgeted conversion costs for a lean cell are $124,440 for 1,700 production hours. Each unit produced by the cell requires 15 minutes of cell process time.
During the month, 1,480 units are manufactured in the cell. The estimated materials costs are $57 per unit.
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Cost Behavior
Cover-to-Cover Company is a manufacturer of shelving for books. The company has compiled the following cost data, and wants your help in determining the cost behavior. After reviewing the data, complete requirements (1) and (2) that follow.
UnitsProduced
TotalLumberCost
TotalUtilitiesCost
Total MachineDepreciationCost
6,000 shelves
$72,000
$7,900
$135,000
12,000 shelves
144,000
14,800
135,000
24,000 shelves
288,000
28,600
135,000
30,000 shelves
360,000
35,500
135,000
2. For each cost, determine the fixed portion of the cost, and the per-unit variable cost. If there is no amount or an amount is zero, enter "0". Recall that, for N = Number of Units Produced, Total Costs = (Variable Cost Per Unit x N) + Fixed Cost. Complete the following table with your answers. Round variable portion of cost (per unit) answers to two decimal places.
Cost
Fixed Portionof Cost
Variable Portionof Cost (per Unit)
Lumber
$fill in the blank…
solve a and b.
Fine Lumber Inc. mills and finishes furniture kits. A certain kit requires the following:
Direct materials standard: 2 square yards at $13.50 per yard
Direct manufacturing labor standard: 1.5 hours at $20.00 per hour
During the third quarter, the company made 1,500 kits and used 3,150 square yards of wood costing $42,600. Direct labor totaled 2,100 hours for $46,150.
Required:
a.Use a worksheet to compute the following variances and indicate whether each variance is favorable or unfavorable: direct materials price and efficiency variances for the quarter, and
b. direct manufacturing labor price and efficiency variances for the quarter.
Chapter C Solutions
Managerial Accounting
Ch. C - Prob. 1DQCh. C - How does push production differ from pull...Ch. C - Prob. 3DQCh. C - Prob. 4DQCh. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Can management of a company like Samsung use cycle...Ch. C - Identify each of the following as applying more to...Ch. C - Identify each of the following as applying more to...Ch. C - Prob. 3QSCh. C - Use lean accounting to prepare journal entries for...Ch. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - A company reports ending accounts payable of...Ch. C - Prob. 13QSCh. C - Identify each of the following production...Ch. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - A manufacturer makes T-shirts in several...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Use the information below for Tesla to answer the...Ch. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Robo-Lawn is a lean manufacturer of robotic lawn...Ch. C - Prob. 2PCh. C - Prob. 3P
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