The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002).Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keenindecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supplytechniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’sleads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

1. Due to COVID 19 emergency do you thinkagile supply chain is the right concept in this kind of situation? Give reason with example.

Critical Thinking

The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002).Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keenindecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supplytechniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’sleads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

Consult chapter 7 of your text book or secondary available data on internet and answer the following questions.

Question:

1. Assess the reasons for using lean thinking (suitable examples),what are the benefits from Suppliers to end users?

The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002).Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keenindecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supplytechniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’sleads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

Consult chapter 7 of your text book or secondary available data on internet and answer the following questions.

1. Assess the reasons for using lean thinking (suitable examples),what are the benefits from Suppliers to end users?

Alternative Inventory Methods

Frate Company was formed on December 1, 2015, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

A physical inventory on March 31, 2016 shows 3,000 units on hand.

Required:

For each method, enter your answers in chronological order.

Prepare schedules to compute the ending inventory at March 31, 2016, under each of the following inventory methods:
(For the weighted average method, round the average cost per unit to two decimal places.)
1. FIFO

2. LIFO

3. Weighted average

Alternative Inventory Methods

Frate Company was formed on December 1, 2015, and uses the periodic inventory system. The following information is available from Frate's inventory records for Product Ply:

A physical inventory on March 31, 2016 shows 5,800 units on hand.

Required:

For each method, enter your answers in chronological order.

Prepare schedules to compute the ending inventory at March 31, 2016, under each of the following inventory methods:
(For the weighted average method, round the average cost per unit to two decimal places.)
1. FIFO

2. LIFO

3. Weighted average

In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company’s new merchandising activities. Also, Business Solutions does not use reversing entries and, therefore, all revenue and expense accounts have zero beginning balances as of January 1, 2018. Its transactions for January through March follow:

Jan. 4 The company paid cash to Lyn Addie for five days’ work at the rate of $175 per day. Four of the five days relate to wages payable that were accrued in the prior year.
5 Santana Rey invested an additional $25,000 cash in the company.
7 The company purchased $6,600 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB shipping point, invoice dated January 7.
9 The company received $2,688 cash from Gomez Co. as full payment on its account.
11 The company completed a five-day project for Alex’s Engineering Co. and billed it $5,470, which is the total price of $6,820 less the advance payment of $1,350.
13 The company sold merchandise with a retail value of $4,400 and a cost of $3,510 to Liu Corp., invoice dated January 13.
15 The company paid $710 cash for freight charges on the merchandise purchased on January 7.
16 The company received $4,180 cash from Delta Co. for computer services provided.
17 The company paid Kansas Corp. for the invoice dated January 7, net of the discount.
20 Liu Corp. returned $700 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $280 cost, is discarded. (The policy of Business Solutions is to leave the cost of defective products in cost of goods sold.)
22 The company received the balance due from Liu Corp., net of both the discount and the credit for the returned merchandise.
24 The company returned defective merchandise to Kansas Corp. and accepted a credit against future purchases. The defective merchandise invoice cost, net of the discount, was $486.
26 The company purchased $10,000 of merchandise from Kansas Corp. with terms of 1/10, n/30, FOB destination, invoice dated January 26.
26 The company sold merchandise with a $4,600 cost for $5,810 on credit to KC, Inc., invoice dated January 26.
31 The company paid cash to Lyn Addie for 10 days’ work at $175 per day.
Feb. 1 The company paid $2,565 cash to Hillside Mall for another three months’ rent in advance.
3 The company paid Kansas Corp. for the balance due, net of the cash discount, less the $486 amount in the credit memorandum.
5 The company paid $410 cash to the local newspaper for an advertising insert in today’s paper.
11 The company received the balance due from Alex’s Engineering Co. for fees billed on January 11.
15 Santana Rey withdrew $4,750 cash from the company for personal use.
23 The company sold merchandise with a $2,550 cost for $3,410 on credit to Delta Co., invoice dated February 23.
26 The company paid cash to Lyn Addie for eight days’ work at $175 per day.
27 The company reimbursed Santana Rey for business automobile mileage (1,000 miles at $0.32 per mile).
Mar. 8 The company purchased $2,850 of computer supplies from Harris Office Products on credit, invoice dated March 8.
9 The company received the balance due from Delta Co. for merchandise sold on February 23.
11 The company paid $860 cash for minor repairs to the company’s computer.
16 The company received $5,260 cash from Dream, Inc., for computing services provided.
19 The company paid the full amount due to Harris Office Products, consisting of amounts created on December 15 (of $1,130) and March 8.
24 The company billed Easy Leasing for $9,157 of computing services provided.
25 The company sold merchandise with a $2,102 cost for $2,870 on credit to Wildcat Services, invoice dated March 25.
30 The company sold merchandise with a $1,048 cost for $2,360 on credit to IFM Company, invoice dated March 30.
31 The company reimbursed Santana Rey for business automobile mileage (300 miles at $0.32 per mile).

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation:

The March 31 amount of computer supplies still available totals $2,205.
Three more months have expired since the company purchased its annual insurance policy at a $2,472 cost for 12 months of coverage.
Lyn Addie has not been paid for seven days of work at the rate of $175 per day.
Three months have passed since any prepaid rent has been transferred to expense. The monthly rent expense is $855.
Depreciation on the computer equipment for January 1 through March 31 is $1,060.
Depreciation on the office equipment for January 1 through March 31 is $400.
The March 31 amount of merchandise inventory still available totals $594.

Required:

1. Prepare journal entries to record each of the January through March transactions.

Every adjustment entry affects:

2 points   

QUESTION 2

The owner of a corporation is called a:

2 points   

QUESTION 3

When a corporation is owned by a few persons or by a family, it is called a:

2 points   

QUESTION 4

A distribution of cash to stockholders of a publicly held corporation is called:

2 points   

QUESTION 5

The process of preparing and closing the accounts of an organization for an accounting period is called a/an:

2 points   

QUESTION 6

The adjusting entry for supplies should be:

2 points   

QUESTION 7

The second part of stockholder equity is called:

2 points   

QUESTION 8

How many financial statements do corporations prepare?

2 points   

QUESTION 9

The Income Statement of a merchandising business has:

2 points   

QUESTION 10

The operating income is an excess of:

2 points   

QUESTION 11

An analysis that reports each dollar amount in a financial statement as a percentage of another amount is called:

2 points   

QUESTION 12

A statement that reports the changes in the retained earnings accounts during an accounting period is called the:

2 points   

QUESTION 13

Which statement classifies activities as operating, investing, or financing?

2 points   

QUESTION 14

Which account should you debit to close the net loss of a merchandise business?

2 points   

QUESTION 15

The maximum number of shares a corporation may issue is called:

2 points   

QUESTION 16

Match the terms in column I with the descriptions in Column II.

Match the terms in column I with the descriptions in Column II.

comparability

horizontal analysis

vertical analysis

base period

preferred stock

authorized capital stock

earnings distributions

proxy

statements of stockholders' equity

cost of goods sold

A.        

legal form to transfer voting rights

B.        

comparison of the same items for two or more accounting periods

C.        

accounting information to be compared between two fiscal periods

D.        

preference over common stock

E.        

the maximum number of shares a corporation may issue

F.        

changes in all stockholders' equity accounts

G.        

period used for comparison

H.        

cost of goods sold

I.         

dividends

J.         

relationship of items from one period to another

On January, 1, 2018, Nath-Langstorm services, inc, a computer software training firm, leased several customers under a 2 year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an anuual interest rate of 4%. The contract calls for 4 rent payemnts of 16,500.00 each, payable semiannually on JUne 30 and December 31 each year. the computers were acquired by ComputerWorld at a cost of 103,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annully. (use appropriate charts). Prepare the appropriate entries for both the leasee and the lessor from the beginning of the lease through the end of 2018.

1. Record the beginning of the lease for Nath-Langstorm

2.Record the lease payment and interest expense for Nath

3. Record the amortization expense for Nath

4. Record the lease payment and interest expense for Nath

5. Record the amortization expense for Nath

6. Record the lease revenue received by computerworld

7. Record the deprecation expense for computerworld

8 Record the lease revenue received by computerworld

9. Record the depreciation expense for Computerworld

On January, 1, 2018, Nath-Langstorm services, inc, a computer software training firm, leased several customers under a 2 year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an anuual interest rate of 4%. The contract calls for 4 rent payemnts of 16,500.00 each, payable semiannually on JUne 30 and December 31 each year. the computers were acquired by ComputerWorld at a cost of 103,000 and were expected to have a useful life of five years with no residual value. Both firms record amortization and depreciation semi-annully. (use appropriate charts). Prepare the appropriate entries for both the leasee and the lessor from the beginning of the lease through the end of 2018.

1. Record the beginning of the lease for Nath-Langstorm

2.Record the lease payment and interest expense for Nath

3. Record the amortization expense for Nath

4. Record the lease payment and interest expense for Nath

5. Record the amortization expense for Nath

6. Record the lease revenue received by computerworld

7. Record the deprecation expense for computerworld

8 Record the lease revenue received by computerworld

9. Record the depreciation expense for Computerworld