x M Question 3-QUIZ- CH 17-C X Chapter 5: Customers and Sal x + mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%2... 17 1 Saved As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data: Item Manufacturing costs as percentage of sales: Product-level support Variable manufacturing overhead Direct materials Direct manufacturing labor Other Financial Data: Sales revenue Inventory of WIP Other Data: Manufacturing cycle time Inventory financing costs (per annum) Required: Existing Situation After Adopting JIT 11% 4% 29 11 31 21 23 16 $ 1,385,000 215,000 $ 1,720,000 37,000 60 days 10% 30 days 10% 蒲冰 2 As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation? Items Sales Less: Costs Operating profit Current Situation After JIT Change 80 54 #3 888 % 5 W E S D < Prev 96 3 of 6 Next > MacBook Pro & 7 R T Y U F G H * 00 8 9 O 0 J K L Help S P
x M Question 3-QUIZ- CH 17-C X Chapter 5: Customers and Sal x + mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%2... 17 1 Saved As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data: Item Manufacturing costs as percentage of sales: Product-level support Variable manufacturing overhead Direct materials Direct manufacturing labor Other Financial Data: Sales revenue Inventory of WIP Other Data: Manufacturing cycle time Inventory financing costs (per annum) Required: Existing Situation After Adopting JIT 11% 4% 29 11 31 21 23 16 $ 1,385,000 215,000 $ 1,720,000 37,000 60 days 10% 30 days 10% 蒲冰 2 As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT. Specifically, what is the estimated change in annual operating income attributable to the JIT implementation? Items Sales Less: Costs Operating profit Current Situation After JIT Change 80 54 #3 888 % 5 W E S D < Prev 96 3 of 6 Next > MacBook Pro & 7 R T Y U F G H * 00 8 9 O 0 J K L Help S P
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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M Question 3-QUIZ- CH 17-C X
Chapter 5: Customers and Sal x +
mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fbb.tulsacc.edu%2...
17 1
Saved
As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production
methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they
would like to have some data to inform their decision making in this regard. You are provided with the following data:
Item
Manufacturing costs as percentage of sales:
Product-level support
Variable manufacturing overhead
Direct materials
Direct manufacturing labor
Other Financial Data:
Sales revenue
Inventory of WIP
Other Data:
Manufacturing cycle time
Inventory financing costs (per annum)
Required:
Existing Situation
After Adopting JIT
11%
4%
29
11
31
21
23
16
$ 1,385,000
215,000
$ 1,720,000
37,000
60 days
10%
30 days
10%
蒲冰
2
As the management accountant for the company, prepare an estimate the financial benefits associated with the adoption of JIT.
Specifically, what is the estimated change in annual operating income attributable to the JIT implementation?
Items
Sales
Less: Costs
Operating profit
Current
Situation
After JIT
Change
80
54
#3
888
%
5
W
E
S
D
< Prev
96
3 of 6
Next >
MacBook Pro
&
7
R
T
Y
U
F
G
H
* 00
8
9
O
0
J
K
L
Help
S
P
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