What does a Lean organization value the most?

1. Job security over service

2. Tools first, then people

3. People first, then tools

Which statement best describes the term Lean?

1. A flavor of the month fad that will likely soon be forgotten

2. A broad cachphrase that describes a holistic and sustainable approach to using less of everything to give you more

3. An improvement approach focused primarily on applying tools to eliminate waste

The logic of Lean includes the following assumptions:

1. You know best what customers need, so you define value. Waste is a natural part of all processes. Pursuing perfection is unrealistic and ultimately unattainable.

2. Your mission is if it ain't broken don't fix it

3. You provide products/services to customers who define value. You create in a process, and waste in a process diminishes value. The perfect process has no waste, so you can maximize customer value by pursuing the perfect process.

When analyzing the value stream, you:

1. Focus only on the flow of information

2. Ensure the authorized colors of sticky notes are use for each process map.

3. Identify all the activities and events that occur to get the product or service to your customer, along with corresponding information flow.

To achieve flow, you must:

1. Conduct a benchmark

2. Reduce variation and eliminate defects, equipment breakdowns, rework and outages.

3. Establish a committee to study the sources of flow blockages.

Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out in equal quarterly installments to its shareholders. a. Suppose a company currently pays an annual dividend of $3.40 on its common stock in a single annual installment, and management plans on raising this dividend by 3.8 percent per year indefinitely. If the required return on this stock is 10.5 percent, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Now suppose the company in (a) actually pays its annual dividend in equal quarterly installments; thus, the company has just paid a dividend of $.85 per share, as it has for the previous three quarters. What is your value for the current share price now? (Hint: Find the equivalent annual end-of-year dividend for each year.) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

A single-storey brick veneer house (single layer of brick on a timber frame) has a front corner lounge-room with a floorplan measuring 4.0 m by 3.8 m. The ceiling is 3.0 m high. The building fabric of the two exterior walls comprises a 12 mm thick layer of plaster, a 100 mm air gap and the exterior house bricks (110 mm thick). One of these walls has a window measuring 2.7 m wide by 1.35 m high, featuring a 3-mm thick glass pane installed in the mid-1950s. The floor is carpet over 19 mm thick pine floorboards, and the house is on stumps with a ventilated air gap between the ground and the floorboards. The ceiling is 12 mm plasterboard covered with a 50 mm thick layer of loose fill insulation in the roof cavity. This house is located in suburban Melbourne.

Based on your own research into pricing for retrofitting double glazing, modern insulating single-glazing, adding ceiling or under-floor insulation, or other measures, what would be the most cost-effective strategy for improving the heat retention of the room? Show calculated results for at least three alternatives.

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials):

Inventory balances at the beginning and end of the year were as follows:

The total manufacturing costs for the year were $680,000; the cost of goods available for sale totaled $725,000; the unadjusted cost of goods sold totaled $663,000; and the net operating income was $34,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold.

Required:

Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

Prepare an income statement for the year.

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of June 30.
$

Applying and Analyzing Inventory Costing Methods
At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $21. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units.

(a) Assume that Chen uses the first-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance. Use the financial statement effects template to record cost of goods sold for the period.
Ending inventory balance $Answer
Cost of goods sold              $Answer

Use negative signs with answers, when appropriate.

(b) Assume that Chen uses the last-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance.
Ending inventory balance $Answer
Cost of goods sold              $Answer

(c) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance.
Ending inventory balance $Answer
Cost of goods sold              $Answer

(d) Which of these three inventory costing methods would you choose to:

Please answer all parts of the question.

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of June 30.
$

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4 , using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost on June 30.
$

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LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of June 30.
$

Perpetual Inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of March 31.
$