Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service. To Explain: The purchasing policy of Company HM.

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Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

Answer 1

Question

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

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Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

KIARA LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: ASSETS Property, plant and equipment (cost) Accumulated depreciation Long-term investments Inventory Accounts receivable Company tax paid in advance Bank EQUITY AND LIABILITIES 2024 2023 R R 2 490 000 1 620 000 (630 000) 660 000 1 050 000 1 230 000 30 000 (480 000) 450 000 1 290 000 900 000 0 750 000 660 000 5 580 000 4 440 000 Ordinary share capital 2 700 000 2 000 000 Retained income 1 500 000 1 158 000 Long-term loan from Kip Bank (15%) 900 000 1 000 000 Accounts payable 480 000 228 000 Company tax payable 0 54 000 5 580 000 4 440 000 ADDITIONAL INFORMATION All purchases and sales are on credit. Interim dividends paid during the year amounted to R150 750. Credit terms of 3/10 net 60 days are granted by creditors.

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Answer 2

Question

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

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Answer 3

Question

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

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Answer 4

Question

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

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Answer 5

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

Answer 6

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

Answer 7

Chapter 27, Problem 27.1BPR

a)

To determine

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.

Answer 8

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

Answer 9

b)

To determine

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

Answer 10

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

Answer 11

c)

To determine

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

Answer 12

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Ch. 27 - Prob. 1DQ Ch. 27 - Prob. 2DQ Ch. 27 - Why is a product-oriented layout preferred by lean...Ch. 27 - Prob. 4DQ Ch. 27 - Prob. 5DQ Ch. 27 - Why would a lean manufacturer strive to produce...Ch. 27 - Prob. 7DQ Ch. 27 - Prob. 8DQ Ch. 27 - Prob. 9DQ Ch. 27 - Why is the direct labor cost category eliminated...

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service. To Explain: The purchasing policy of Company HM.

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service. To Explain: The purchasing policy of Company HM.

To Identify: The additional costs involved with the bid of Company IH beyond price, and the reasons for ignoring them.

To Calculate: The additional costs per frame for the bid of Company IH, if the annual cost of money is 12%

Chapter 27 Solutions

Lean Manufacturing: Lean manufacturing aims at reducing the cost and minimizing the waste involved in the production, in order to optimize the value for the product or the service.

To Explain: The purchasing policy of Company HM.