Question

a. Squirrel Co. operates in a lean manufacturing environment. For June production, conversion cost incurred $25,000...

a. Squirrel Co. operates in a lean manufacturing environment. For June production, conversion cost incurred $25,000 and Squirrel purchased 7,000 units of raw materials at $4.00 per unit on account. The journal entry required to record conversion incurred cost is:

b. Squirrel Co. operates in a lean manufacturing environment. For June production, conversion cost incurred $25,000 and Squirrel purchased 7,000 units of raw materials at $4.00 per unit on account. The journal entry required to record materials purchase transaction is:

c. ABC co. makes wreaths in batch sizes of 10. The cutting & assembly process takes 5 minutes per wreath and the decorating process time is 6 minutes per wreath. It takes 10 minutes to move the wreaths from the cutting & assembly process to the decorating process (this is total move time for all steps). What is the value-added ratio (approximately) for this process?

Homework Answers

Answer #1
Work in Process - Inventory $ 25,000
     Manufacturing Labor $ 25,000
Work in Process - Inventory $ 28,000
     Accounts Payable (7000*4) $ 28,000
Value added leadtime (5+6) 11
Move time 10
Within batch wait time (11*(10-1)) 99
Total lead time 120
Value added ratio (11/120) 9.17%
Within batch wait time = ( total time to perform operations) X ( batch size - 1)
Value added ratio = Value added lead time / Total lead time
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Krisco Company operates under the lean philosophy. As such, it has a production cell for its...
Krisco Company operates under the lean philosophy. As such, it has a production cell for its microwave ovens. The conversion cost for 2,400 hours of production is budgeted for the year at $4,800,000. During January, 2,000 microwave ovens were started and completed. Each oven requires 6 minutes of cell processing time. The materials cost for each oven is $100. Instructions Use lean accounting to: 1. Determine the budgeted cell conversion cost per hour. 2. Determine the manufacturing cost per unit....
MANAGERIAL ACCOUNTING Q1: The Klamath Corp. produces two products, saws and drills. Three activities are used...
MANAGERIAL ACCOUNTING Q1: The Klamath Corp. produces two products, saws and drills. Three activities are used in their manufacture. These activities and their associated costs and bases are as follows: Activity Budgeted Costs Activity Base Stamping $200,000 Machine hours Assembly $400,000 Labor hours Setup $30,000 Number of setups Activity Base Saws Drills Total Machine hours 4,000 6,000 10,000 Labor hours 7,000 13,000 20,000 Number of setups        3        12        15 Units produced     500     600 a. Determine the activity rate for each...
JIT/Lean Production and Product Costing Presented is information pertaining to the standard or budgeted unit cost...
JIT/Lean Production and Product Costing Presented is information pertaining to the standard or budgeted unit cost of a product manufactured in a JIT/Lean Production environment at CNN Systems Inc.: Direct materials .......................................................... $40 Conversion .............................................................. 30 Total ................................................................... $70 All materials are added at the start of the production process. All raw materials purchases and conver- sion costs are directly assigned to Cost of Goods Sold. At the end of the period, costs are backed out and assigned to Raw...
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost...
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $120. The budgeted conversion cost for the year is $192,000 for 2,000 production hours. A unit of Style Omega requires 15 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 800 Style Omega units for June. 2. Conversion costs were applied to 800 Style Omega units of production. 3. 785 units of...
Answer A-C using info Equivalent units of production (EUP)- weighted average method (Forming and Packaging cost...
Answer A-C using info Equivalent units of production (EUP)- weighted average method (Forming and Packaging cost categories) Units % Forming Costs EUP- Forming % Packaging EUP- Packaging Units completed and transferred out 22,700 100% 22,700 100% 22,700 Ending work in process - units 1,960 65% 1,274 65% 1,274 Total units 24,660 23,974 23,974 Cost per equivalent unit of production Forming Packaging Costs of beginning work in process 400,000 200,000 Costs incurred this period 2,497,000 579,720 Total costs Costs 2,897,000 Costs...
Really only need 4 and down solved. Overapplied amount needs to be applied across a few...
Really only need 4 and down solved. Overapplied amount needs to be applied across a few accounts, but I'm stuck. Mountain Manufacturing Company produces custom stamped metal parts for a variety of customers in Western Canada. During January, the company had two jobs in process. Job A was an order for 1,200 stamped parts and was started in December. Job A had $12,000 of manufacturing costs already accumulated on January 1. Job B was an order for 1,000 stamped parts...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT