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Exam 12: Lean Manufacturing and Activity Analysis

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Question 41

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The Kwanika Co. operates in a lean manufacturing environment. During its first year of operations, Kwanika budgeted for 40,000 hours in the production of 100,000 units in its cell X-22. Material costs were $7 per unit. Cell X-22 conversion costs were budgeted for the year as follows: During January, material for 8,400 units was purchased on account.  There were 8,200 units manufactured and 8,000 were sold shipped to customers for $35 each. Journalize: (a) the material purchases (b) the application of conversion costs (c) the transfer from work in process to finished goods (d) the sales (were made on account) and associated cost of goods sold for the month of January.

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(a)
(b) ...

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Question 42

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Examples of transforming a traditional manufacturing environment to a lean environment is to do all of the following except

A) form partnerships with reliable suppliers.
B) reorganize operational processes to organized product lines.
C) train employees to perform various operations.
D) increase raw materials to produce more, thereby increasing finished goods inventory.

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Question 43

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The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated material cost is $18 per unit. Provide the following journal entries. (a) Materials are purchased to produce 4,000 units. (b) Conversion costs are applied to 3,800 units of production. (Please round to nearest cent.) (c) 3,650 units are placed into finished goods.

Reducing wait time is directly linked to reducing inventory.

Maximum effectiveness and efficiency are reached when the lean philosophy is used mainly by manufacturers.

Employee involvement in a product-oriented factory emphasizes employee teams, rather than individual employees.

Squirrel Co. operates in a lean manufacturing environment. For June production, Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. The journal entry required to record this transaction is:

In the lean principles philosophy, unexpected downtime is the result of unreliable processes.

Within-batch wait time increases total lead time.

Under the lean production concept, employees are better utilized if they are experts in one operation rather than wasting time training them to learn various production operations.

Setups are a significant time-consuming activity in traditional production environments.

Inventory reduction is a ____ principle.

Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units. From the foregoing information, determine the budgeted cell conversion cost per unit.

In a lean environment, the journal entry to record conversion costs would include a debit to the raw and in process inventory account.

Which of the following is not a prevention cost?

In a push manufacturing system, raw materials are released to production based on forecasted demand.

A local college is aggressively working to reduce the time it takes students to enroll for each semester. Which of the following changes would not help achieve this goal?

Lean manufacturing focuses on reducing time, cost, and poor quality in processes.

Which of the following is characteristic of a lean production layout?

The budgeted cell conversion cost rate includes which of the following?