Just-in-Time Inventories.Mitch Manufacturing Company uses the perpetual inventory system and plans to use raw materials costing $1,200,000 in manufacturing its products. Mitch will operate itsfactors 300 days during the year. Currently, Mitch follows the just-in-case philosophy with its raw materials inventory, keeping raw materials costing $12,000 in its rawmaterials inventory. Mitch plans to switch to the just-in-time manufacturing philosophy by keeping only the raw materials needed for the next two days of production.Calculate the new raw materials inventory level after Mitch implements the just-in-time manufacturing philosophy in its factory.Just in Time InventoriesRaw Material used per day: $ 0Raw material inventory level: $0

Name: Just-in-Time Inventories.Mitch Manufacturing Company uses the perpetu
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Description: Just-in-Time Inventories.Mitch Manufacturing Company uses the perpetual inventory system and plans to use raw materials costing $1,200,000 in manufacturing its products. Mitch will operate itsfactors 300 days during the year. Currently, Mitch follow

Just In Time Is Management System That Raw Material Orders From Suppliers Directly Based On Demand.…

Business

Accounting

Mitch Manufacturing Company uses the perpetual inventory system and p actors 300 days during the year. Currently, Mitch follows the just-in-case p materials inventory. Mitch plans to switch to the just-in-time manufacturin Calculate the new raw materials inventory level after Mitch implements the ust in Time Inventories aw Material used per day: $ 0 caw material inventory level: $0

Mitch Manufacturing Company uses the perpetual inventory system and p actors 300 days during the year. Currently, Mitch follows the just-in-case p materials inventory. Mitch plans to switch to the just-in-time manufacturin Calculate the new raw materials inventory level after Mitch implements the ust in Time Inventories aw Material used per day: $ 0 caw material inventory level: $0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Late in the year, Software City began carrying WordCrafter, a new word processing software program. At December 31, Software City's perpetual Inventory records included the following cost layers in its Inventory of WordCrafter programs. Purchase Date Nov. 14 Dec. 12 Total available for sale at Dec. 31 Quantity 10 28 38 Unit Cost $ 400 320 $ Total Cost $ 4,000 8,960 $12,960 a. At December 31, Software City takes a physical Inventory and finds that all 38 units of WordCrafter are on hand. However, the current replacement cost (wholesale price) of this product is only $250 per unit. 1. Prepare the entries to record this write-down of the Inventory to the lower-of-cost-or-market at December 31. (Company policy is to charge LCM adjustments of less than $2,000 to Cost of Goods Sold and larger amounts to a separate loss account.) 2. Prepare the entries to record the cash sale of 32 WordCrafter programs on January 9, at a retail price of $380 each. Assume that Software City uses the FIFO flow…
Cari Furniture has the following information in respect of Coffee tables for 2021: Production specifications: Beginning Inventory Target Ending Inventory Direct Materials: Particle board 20,000 b.f. 18,000 b.f. Teak 25,000 b.f. 22,000 b.f. Finished goods: Coffee tables 5,000 units 3,000 units Revenue expected for 2021 are: Selling price $392 per table Units sold 52,000 coffee tables Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of Teak. Costs for 2020 and expected for 2021 include: 2020 2021 Particle board (per b.f.) $ 3.90 $ 4.00 Teak (per b.f.) $ 5.80 $ 6.00 Laminating labor (per hour) $24.00 $25.00 Machining labor (per hour) $29.00 $30.00 Prepare the materials usage budget.
During the year, Wright Company sells 495 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Number of Unit Date January 1 May 5 Transaction Units Cost Total Cost Beginning inventory 60 $69 $4,140 Purchase 265 72 19,080 November 3 Purchase 215 77 16,555 540 $39,775 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. Cost of Goods Available for Sale Cost of Goods Sold LIFO Number Cost per of units unit Beginning Inventory 60 $ 69 $ Cost of Goods Available for Sale 4,140 Number of units Cost per Cost of Goods unit Number Sold of units Ending Inventory Cost per unit Ending Inventory $ 0 Purchases: May 5 265 $ 72 19,080 0 November 3 215 $ 77 16,555 0 Total 540 $ 39,775 $ 0 0 $ 0
Air Force Surplus began July 2018 with 100 stoves that cost $10 each. During the month, the company made the following purchases at cost: (Click the icon to view the purchases.) The company sold 300 stoves, and at July 31, the ending inventory consisted of 70 stoves. The sales price of each stove was $48. Read the requirements. Requirement 1. Determine the cost of goods sold and ending inventory amounts for July under the average-cost, FIFO, and LIFO costing methods. Round the average cost per unit to two decimal places, and round all other amounts to the nearest dollar. Number of units Average cost Cost of goods sold Ending inventory Requirements 1. Determine the cost of goods sold and ending inventory amounts for July under the average-cost, FIFO, and LIFO costing methods. Round the average cost per unit to two decimal places, and round all other amounts to the nearest dollar. 2. Explain why cost of goods sold is highest under LIFO. Be specific. 3. Prepare the Air Force Surplus…
Required information Skip to question [The following information applies to the questions displayed below.]Shadee Corp. expects to sell 650 sun visors in May and 420 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 85 and 55 units, respectively. Ending finished goods inventory for June will be 55 units. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 27 closures on hand on May 1, 21 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $7 per hour. Required:1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.50.) (Round your answer to 2 decimal places.)
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During the year, Wright Company sells 535 remote-control airplanes for $120 each. The company has the following inventory purchase transactions for the year. Date Transaction Number of Units Unit Cost Total Cost January 1 Beginning inventory 40 $65 $2,600 May 5 Purchase 285 68 19,380 November 3 Purchase 235 73 17,155 560 $39,135 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO.