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 3QS
To determine
Lean Business Model:
Lean Business Model is a strategic approach to business where the thrust is on eliminating wastes from the processes and products of the business without compromising on the satisfaction of customer needs.
Purchase of Raw Material:
In Lean business model the production happens only when there is a customer order, thus keeping minimal or no inventory at all. Further, the raw materials are ordered only when the production is about to happen thus keeping no inventory and directly introducing the raw material to Work-In-Process.
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Analyze T-accounts given below:
Raw material inventory
Balance
$15
Purchased
$245 Used
Balance
$30
Work-in-progress inventory
$30
Cost of goods
$245 manufactured
S310
Balance
Direct material
$540
Direct labor
Manufacturing
overhead
$130
Balance
$40
Amount of indirect material used is:
a. $230
b. $110
c. $120
d. $340
Exercise 16-44 (Algo) (Appendix used in requirement [b]) Variable Cost Variances (LO 16-5, 7)
Rankin Fabrication reports the following information with respect to its direct materials:
Actual quantities of direct materials used
Actual costs of direct materials used.
Standard price per unit of direct materials.
Flexible budget for direct materials.
Rankin Fabrication holds no materials inventories.
35,500 gallons
$ 201,680
$ 5.79
$ 213,100
Required:
a. Compute the direct material price and efficiency variances.
b. (Appendix) Prepare the journal entries to record the purchase and use of the direct materials using standard costing.
Direct materials price variance
Direct materials efficiency variance
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the direct material price and efficiency variances.
Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not
select either…
Exercise 2: Flow of Cost - Cost System
You are required to compute for the unknowns in the following accounts:
Materials
Inventory
7,950
Purchase Returns
750
Purchases
27,500
Direct Materials
?
Indirect Materials
(e)
Inventory, end
5,100
Work in Process
Inventory
13,650
Cost of Goods Sold Completed
(c)
Direct Materials Cost
23,500
Direct Labor Cost
(a)
Factory Overhead Applied (100% of direct labor cost)
(b)
Inventory
11,750
62,150
Finished Goods
Inventory
12,500
Cost of Goods Sold
(d)
Cost of Goods Sold Completed
?
Inventory, end
11,250
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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- Entry for Issuing Materials Materials issued are as follows: Requisition No. Material Job No. Aluminum 500 503 201 202 203 204 205 Plastic Rubber Glue Steel 504 Indirect 510 Amount $85,210 29,110 3,810 2,030 39,810 Journalize the entry to record the issuance of materials. If an amount box does not require an entry, leave it blank.arrow_forward41 1:46 ... 4G 52 Chegg Expert Hiring Ads Subject Test Note: - You are attempting question 2 o Analyze T-accounts given below: Raw material inventory $15 Balance Purchased $245 Used $30 Balance Work-in-progress inventory $30 Cost of goods $245 manufactured Balance Direct material $540 Direct labor $310 Manufacturing overhead $130 Balance $40 Amount of indirect material used is: а. $230 b. $110 c. $120 d. $340 2 IIarrow_forward< CDOOR a. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. Received Receiving Report Number Received Quantity Received Unit Price Issued Materials Requisition Number Balance Issued Quantity Issued Balance Balance Unit Balance Amount Date Quantity price Amount May 1 230 $8 $1,840 27 160 $10 May 4 104 260 33 110 12 117 150 b. Determine the materials inventory balance at the end of May. A May 10 May 21 May 27 c. Journalize the summary entry to transfer materials to work in process. If an amount box does not require an entry, leave it blank. d. Comparing causes idle time. as reported in the materials ledger with predetermined order points would enable management to order materials before a(n)arrow_forward
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