Sunny Park Tailors has been asked to make three different types of wedding suits for separate customers. The table below highlights the time taken in hours for cutting and sewing? (process1) and delivery? (process2) of each of the suits.

Assume that orders for suits have been listed in the above table in the order in which they were received.

Using the FCFS rule for? scheduling,the sequence is:

The options are:  

2-3-1

3-2-1

1-2-3

1-3-2

2-1-3

3-1-2

For the schedule developed using the FCFS? rule, the total length of time taken to complete the three suits?(including delivery)? = _____hours ?(enter your response as a whole? number).

Using? Johnson'srule for? 2-machinescheduling, the sequence is:

The options are:  

2-3-1

1-3-2

3-2-1

3-1-2

1-2-3

2-1-3

For the schedule developed using the? Johnson's rule, the total length of time taken to complete the three suits? (including delivery)? = _______hours ?(enter your response as a whole? number).

Of the two developed? schedules,_______rule gets the schedule finished sooner.

The options are: FCFS or Johnsons

Sheffield Inc. is trying to determine whether to use the FIFO or average cost formula. The accounting records show the following selected inventory information:

The company accountant has prepared the following partial statement of income to help management understand the financial statement impact of each cost determination cost formula.

(a)

Fill in the missing amounts in the perpetual inventory schedule, assuming the use of the FIFO cost formula.

Problem: Sam has requested that you (1) identify all of the cash flows for this project, (2) calculate the project's NPV and IRR, and (3) provide your recommendation regarding whether the project should be accepted or rejected. The details of your cash-flow projections should be clearly presented. Show all work.

ABC Company is examining a new capital-investment proposal that would greatly increase the production of diapers. The proposal involves an investment in some machines that would increase the firm's efficiency at producing and preparing for export the top-quality diapers for which the region has become well-known. The purchase price of this machinery is $840,000 and installation costs would total $60,000. The equipment would have a useful life of 5 years and, for tax purposes, depreciation charges would be according to the 7-year-asset MACRS schedule. The machinery cost and the installation costs should be capitalized at t=0 and fully depreciated using the MACRS schedule. Management expects the machinery to be sold for a scrap value of $210,790 at the end of year 5. Ramon Rodriguez, the firm's accountant, pointed out that the portion of the factory that would house this new equipment machinery underwent a major 'renovation' 15 months ago with a total cost of $105,200. Because the project would not have been feasible without the renovation, Ramon suggests that the costs of the renovation should be allocated to the project as one of its initial expenses. Interest charges associated with this investment’s financing have been estimated at approximately $70,000 per year, for each year of the project's estimated useful life. The incremental sales (revenues) projections for this investment are shown near the end of this problem statement. Variable operating costs, excluding depreciation, are projected to be 40% of same-year sales. Incremental fixed costs (for maintenance, etc.) are projected to be $25,000 in the first year. For each of the remaining years of operation, this fixed-cost component is projected to increase by 2% per year. If the new machinery is purchased, some of ABC Company’s Net Working Capital (NWC) accounts will be affected. The schedule near the end of the problem statement shows balances for Accounts Receivable, Inventory, and Accounts Payable across the project’s life. Of course, you’ll need to use this information to build the NWC Tracker, which in turn feeds into the ΔNet Working Capital term in the cash-flow worksheet. The Chief Financial Officer of ABC Company, Sam Sand, requests your assistance in preparing an analysis of the net cash flow projections for the proposed investment. Sam believes that the systematic risk of this project is similar to the average systematic risk of other ABC projects. The firm-level required return (also called “hurdle rate” in business lingo) is 10%/year. Sam also indicates that 30% is the appropriate tax rate for this entire analysis. You also have the following information: Sales projections are these for years 1-5: $300,000, $420,000, $510,000, $600,000, and $480,000. The MACRS depreciation schedule for a 7-year asset is as follows: year 1: 14.29%; year 2: 24.49%; year 3: 17.49%; year 4: 12.49%; year 5: 8.93%; year 6: 8.92%; year 7: 8.93%; and year 8: 4.46%. Next, here is the schedule for the various working-capital accounts that will be affected if the project is undertaken:

Problem 16-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4

[The following information applies to the questions displayed below.]

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 23,700 units of product to finished goods inventory. Its 3,300 units of beginning work in process consisted of $93,945 of direct materials and $457,446 of conversion costs. It has 2,550 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $525,555 of direct material costs and $2,605,614 of conversion costs were charged to production.

Beginning work in process consisted of 3,300 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.

Of the 23,700 units completed, 3,300 were from beginning work in process. The remaining 20,400 were units started and completed during May.

Assume that Tamar uses the FIFO method to account for its process costing system.

Problem 16-5A Part 1

1. Prepare the company’s process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Problem 16-5A Part 2

2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.

Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters.

Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $244,000. During that time, the company produced 10,000 units of the M-008 and 2,100 units of the M-123. The direct costs of production were as follows.

Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows.

Required:

a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product?

Total Overhead for M-008? Total Overhead for M-123?

Total Unit Cost for M-008? Total Unit Cost for M-123?

b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product?

Total Overhead for M-008? Total Overhead for M-123?

Total Unit Cost for M-008? Total Unit Cost for M-123?

Problem 16-3A Weighted Average: Process cost summary; equivalent units LO C2, C3, P4

Easecom Company is a manufacturer of highly specialized products for networking video-conferencing equipment. Production of specialized units is, to a large extent, performed under contract, with standard units manufactured to marketing projections. Maintenance of customer equipment is an important area of customer satisfaction. With the recent downturn in the computer industry, the video-conferencing equipment segment has suffered, causing a slide in Easecom’s performance. Easecom’s income statement for the fiscal year ended October 31, Year 1, is presented below.

Easecom Company
Income Statement
For the Year Ended October 31, Year 1
($000 Omitted)

Easecom’s return on sales before interest and taxes was 9% in Fiscal Year 1, while the industry average was 12%. Easecom’s total asset turnover was three times, and its return on average assets before interest and taxes was 27%, both well below the industry average. In order to improve performance and raise these ratios near to, or above, industry averages, Bill Hunt, Easecom’s president, established the following goals for Fiscal Year 2:

• Return on sales before interest and taxes 11%
• Total asset turnover 4 times
• Return on average assets before interest and taxes 35%

To achieve Hunt’s goals, Easecom’s management team took into consideration the rowing international video-conferencing market and proposed the following actions for Fiscal Year 2:

• Increase equipment sales by 10%.
• Increase the cost of each unit sold by 3% for needed technology and quality improvements, and increased variable costs.
• Increase maintenance inventory by $250,000 at the beginning of the year and add 2 maintenance technicians at a total cost of $130,000 to cover wages and related travel expenses. These revisions are intended to improve customer service and response time. The increased inventory will be financed at an annual interest rate of 12%; no other borrowings or loan reductions are contemplated during Fiscal Year 2. All other assets will be held to Fiscal Year 1 levels.
• Increase selling expenses by $250,000 but hold administrative expenses at Year 1 levels.
• The effective rate for Year 2 federal and state taxes is expected to be 40%, the same as Year 1.

Questions:

1) Prepare a pro forma income statement for Easecom Company for the fiscal year ending October 31, Year 2, on the assumption that the proposed actions are implemented as planned and that the increased sales objectives will be met. (All numbers should be rounded to the nearest thousand, i.e., $000 omitted.)

2) Calculate the following ratios for Easecom Company for Fiscal Year 2 and determine whether Bill Hunt’s goals will be achieved:

a. Return on sales before interest and taxes

b. Total asset turnover.

c. Return on average assets before interest and taxes.

3) Discuss the limitations and difficulties that can be encountered in using ratio analysis, particularly when making comparisons to industry averages.

Marketing concept is to place your unique product on the global platform. This includes the availability of goods and services to customers at affordable prices (Webster & Lusch, 2013). The entire product cycle, right from manufacturing to modifying it in accordance to the preferences of the majority consumers. My experience with marketing strategy is that there are wide variety of products available. As compared to earlier days when theme park meant only those in the western world now there are more theme parks in the global market for same purpose. It then created diversity to some extent and notice consumers will go for the brand that hit the market, example Disneyland and Universal Studio. However, this may not be true to all products, as I personally have changed my preferences as time goes by. Another example, toothpaste still brings one name to my mind, even though there are several options available for day to day usages. Organizations began to conduct markets survey, study consumer behavior and eventually the result help to create products that suits the needs of the customers. So far there are no products has ever fail to meet my expectations even with something new in market that hits the store. Sometimes it is the mindset that restricts us from using another product from what we had been using for ages. Again, it does not restrict me from trying other products, however it sometimes so happens that after using a certain new product the satisfaction level is not as much as I had derived from the previous one which takes me back. The value of the brands in a competitive market can vouch for its survival. Value is subjective to how much the consumers would perceive the brand prior to making that decision. Therefore, it’s perceive as regard to the superiority of the brand as compared to unknown brand in the market. The way of marketing concepts has also changed a lot and because of many organizations are trying to be innovative and creative so that they are effective in the industry. There are various ways through which a business organization uses marketing strategies to help them in the business perspective, there are many platforms if we look at the trend of business marketing we will see that social media has emerged as one of the popular platforms in this context and the output has been surprisingly good. Social media has been selected as a platform because it exhibits each and daily, and the number can be high, therefore the platform is effective and will yield results. Using social media has been the most accepted way of marketing because organizations today are spending almost in this avenue because it is convenient and yielding proper results for the organization. In my own work experience, I learned organization need to be flexible and depending upon the demand of the industry and consumer demand, in order to sustain and excel in theme park business globally, using social platform ought to gain its popularity and Universal Studio Park in Beijing is using it as the platform of marketing, this is the future and the need to be available to sustain in the theme park industry. Consumers will evaluate the creditability based upon previous reviews in terms of how honestly it illustrates its model and quality features. Consumers comprehending in terms of the performance and brand’s expectations so long ensuring a long-term inspiration to consumers. Initially it was something new but today it is very common and with the Smart Phones and Tablets advancing every minute the process has become convenient for end users, and they have got used to this convenience to feedback. Therefore, social media is still the big thing in marketing and will rule the future of marketing.

Critically analyze perspectives on the operations management profession, expressing why operations is the key for long-term survival, in terms of cost, speed, dependability, sustainability, and maintaining a competitive advantage within the global market?