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Exam 12: Cost Management for Just-In-Time Environments

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Question 41

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Within-batch wait time increases total lead time.

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Question 42

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Just-in-Time (JIT) manufacturing is also called make-to-stock manufacturing.

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

Which of the following is not a prevention cost?

The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems.

Schedule of Activity Costs From the above schedule of activity costs, determine the total activity cost.

A just-in-time non-manufacturing process can be accomplished by consolidating, in one area, all of the services provided to a customer.

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 just-in-time cell for each customer. The following information relates only to one customer's just-in-time 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 manufacturing cost per unit.

Which of the following results in long lead time?

Traditional manufacturing emphasizes all of the following except

Which of the following is considered non-value-added lead time?

Make-to-order companies typically produce in small batch sizes.

Logan 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 just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell. For the year planned labor and overhead was $76,800,000; materials costs, $25 per unit. Planned production included 9,600 hours to produce 76,800 motor drives. Actual production for the month of August was 5,200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted cell conversion cost per hour.

Just-in-Time (JIT) manufacturing favors organizing work around products rather than around processes.

The Thudaka Company has budgeted its conversion cost for the small lamp production as $65,000 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. (c) 3,650 units are placed into finished goods.

Tucha Manufacturing Co. operates in a just-in-time (JIT) manufacturing environment. The company had scheduled production of 95,000 units during February in its Y12 cell. Actual February production totaled 88,200 units. Tucha had budgeted conversion costs for February totaling $800,000 and budgeted production hours totaling 2,000. Compute Tucha's budgeted cell conversion cost per unit for Cell Y12.

In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment because:

Maximum effectiveness and efficiency are reached when the just-in-time (JIT) philosophy is used only by manufacturers.

In a just-in-time (JIT) system, direct labor is included in conversion costs.

____ manufacturing philosophy emphasizes quality and zero defects.