GLOBAL MACROTRENDS AND THEIR IMPACT ON SUPPLY CHAIN MANAGEMENT

You’ve recently been hired as the production manager for a large consumer packaged goods company. In your first meeting with the sales manager, the manager said that production has always made more product than the sales force could move. He tells you that it would be much better if the sales force could create more demand than the company could supply. What would you tell the sales manager? Is it better to have more demand than supply?

(2-3 paragraphs please) (5-6 sentences each)

1A. At the end of the first year of operations, 4,700 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.

1B. Shawnee Motors Inc. assembles and sells snowmobile engines. The company began operations on August 1 and operated at 100% of capacity during the first month. The following data summarize the results for August:

Determine and Use Overhead Rate

The following selected ledger accounts of Cameron Company are for February (the second month of its accounting year):

a. Determine the amount of indirect material requisitioned for production during February.

$Answer

b. How much indirect labor cost was apparently incurred during February?

$Answer

c. Calculate the manufacturing overhead rate based on direct labor cost.

Answer%

d. Was manufacturing overhead for February under- or overapplied, and by what amount?

Manufacturing overhead was Answerover-appliedunder-applied by $Answer for February.

e. Was manufacturing overhead for the first two months of the year under- or overapplied, and by what amount?

Manufacturing overhead was Answerover-appliedunder-applied by $Answer for the first two months.

f. What is the cost of production completed in February?

$Answer

g. What is the cost of goods sold in February?

$Answer

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Variable Costing, Absorption Costing

During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,900 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,500 scoops. Fixed overhead was applied at $0.75 per unit produced. Fixed overhead was underapplied by $3,000. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year’s operations are as follows (on an absorption-costing basis):

Required:

1. Calculate the cost of the firm’s ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar.
$

What is the cost of the ending inventory under variable costing? Round unit cost to five decimal places. Round your final answer to the nearest dollar.
$

2. Prepare a variable-costing income statement. Round the unit cost to five decimal places, when required. Round your final answers to the nearest dollar. Use the rounded values in subsequent computations.

What is the difference between the two income figures?
$

Variable Costing, Absorption Costing

During its first year of operations, Snobegon, Inc. (located in Lake Snobegon, Minnesota), produced 40,700 plastic snow scoops. Snow scoops are oversized shovel-type scoops that are used to push snow away. Unit sales were 38,500 scoops. Fixed overhead was applied at $0.70 per unit produced. Fixed overhead was underapplied by $2,800. This fixed overhead variance was closed to Cost of Goods Sold. There was no variable overhead variance. The results of the year’s operations are as follows (on an absorption-costing basis):

Required:

1. Calculate the cost of the firm’s ending inventory under absorption costing. Round unit cost to five decimal places. Round your final answer to the nearest dollar.
$

What is the cost of the ending inventory under variable costing? Round unit cost to five decimal places. Round your final answer to the nearest dollar.
$

2. Prepare a variable-costing income statement. Round the unit cost to five decimal places, when required. Round your final answers to the nearest dollar. Use the rounded values in subsequent computations.

What is the difference between the two income figures?
$

Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $22 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton’s first two years of operation is as follows:

Selected information from Lehighton’s year-end balance sheets for its first two years of operation is as follows:

1. Prepare operating income statements for both years based on absorption costing.

2. Prepare operating income statements for both years based on variable costing.

3. Prepare a numerical reconciliation of the difference in income reported under the two costing methods used in requirements (1) and (2).

Ever Increasing Hospital Pharmacy Costs

Each year, hospital executives are faced with the same daunting task of finding ways to tighten the budget belt one more notch. It's a sign of the times against looming — and in some cases significant — reimbursement cuts from Medicare and a regulatory backdrop demanding more for less.

Historically, the pharmacy department represents one of a hospital's highest cost centers. Keeping pace with rising drug costs and staffing needs account for the majority of the pharmacy budget and are the main drivers of annual requests for increases. However, while the clinical side of the house focuses on gaining access to medical advances and newer, more effective drug treatments, the finance department is focused on, at best, maintaining the status quo in terms of pharmacy spending.

It's a double-edged sword. New regulations and quality expectations are requiring that pharmacies allocate more resources to ensure that appropriate initiatives are in place that promote the highest level of patient care and safety. At the same time, the pharmacy represents a prime area of focus for improving cost efficiencies and benchmarks for appropriate reimbursement.

Going forward, hospital pharmacies will have to improve operational practices to ensure staff time is used for the most optimal tasks. What would you suggest as some options/solutions? Answer should be 3 pages long .

Full answer needed with Excel formulas

Lockheed, one of the largest defense contractors in the United States, reported EBITDA of $1,290 million in a recent financial year, prior to interest expenses of $215 million and depreciation charges of $400 million. Capital expenditures amounted to $450 million during the year, and working capital was 7% of revenues (which were $13,500 million). The firm had debt outstanding of $3,068 billion (in book value terms), trading at a market value $3.2 billion, and yielding a pretax interest rate of 8%. There were 62 million shares outstanding, trading at $64 per share, and the most recent beta is 1.10. The tax rate for the firm is 40%. (The treasury bond rate is 7%.) The firm expects revenues, earnings, capital expenditures, and depreciation to grow at 9.5% a year for the next five years, after which the growth rate is expected to drop to 4%. (Even though this is unrealistic, you can assume that capital spending will offset deprecation in the stable-growth period.) The company also plans to lower its debt/equity ratio to 50% for the steady state (which will result in the pretax interest rate dropping to 7.5%.)

A. Estimate the value of the firm

B. Estimate the value of the equity in the firm and the value per share.

* risk premium 5.5% and the tax rate is 40%

1)Low interest rates tend to entice investors into the stock market where they can achieve better returns.

Select one:

True

False

2)

Fiscal policy, the means by which the Canadian government imposes taxes on individuals and corporations and spends its money, has an impact on spending and thus an impact on the stock of some companies.

Select one:

True

False

3)

Stocks would be most favourably affected by

Select one:

a. a increase in interest rates and stable inflation.

b. an increase in interest rates and a decline in inflation.

c. a decline in interest rates and stable inflation.

d. an increase in interest rates and an increase in inflation.

4)

If you wish to have a direct voice in the running of a company, you should purchase

Select one:

a. notes.

b. directorships.

c. preferred stock.

d. common stock.

5)

The stocks of well-known companies are referred to as "preferred stock."

Select one:

True

False

6)

A high times interest earned ratio means that the firm should be more capable of covering its debt payments.

Select one:

True

False

7)

Rising stock prices are related to

Select one:

a. corporate objectives.

b. negative earnings.

c. steadily increasing earnings.

d. poor economic conditions.

Please indicate whether the claim reported in the headline below is most likely to be normative (i.e., how things ought to be), descriptive (i.e., a snapshot of how the world is), or causal (i.e., independent variable has an effect on dependent variable).