Question 1

Vell Inc. uses lean principles to reduce cycle time. Through production improvements the process time was reduced from 4.5 days to 2 days. Inspection time is 0.25 days. Strategic rearrangement of the production area reduced move time to 0.1 days. Wait time was 3 days, but due to improved scheduling and ordering has been reduced by 2.25 days. Total cycle time for Vell after the improvements is:

Accepted Answer

A)   7.6 days.
B)   2.75 days
C)   5.35 days
D)   2.0 days
E)   3.1 daysF) D) and E)
G) C) and D) E

Question 2

A company reports ending accounts payable of $1,440 and cost of goods sold of $11,680. Compute days' payable outstanding.

Accepted Answer

A)   39 days
B)   45 days
C)   36 days
D)   35 days
E)   41 daysF) A) and B)
G) A) and E)

Question 3

Haupt Inc. manufacturers water pumps. Each pump requires $155 of raw materials and $315 of conversion costs. Each pump is sold for $725. Last month Haupt produced and sold 69 pumps. The journal entry to record cost of goods sold would include:

Accepted Answer

A)   Debit to accounts receivable of $32,430.
B)   Credit to sales of $32,430.
C)   Debit to cost of goods sold of $32,430.
D)   Credit to cost of goods sold of $50,025.
E)   Debit to sales of $50,025.F) B) and D)
G) A) and E)

Question 4

If work in process inventory is $900 and cost of goods sold is $16,425, what is days' sales in work in process inventory?

Accepted Answer

A)   21 days
B)   6 days
C)   5 days
D)   20 days
E)   18 daysF) B) and E)
G) B) and D)

Question 5

Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh completed 35 wheelchairs and sold 32 wheelchairs. The ending balance in finished goods inventory is:

Accepted Answer

A)   $3,500.
B)   $1,105.
C)   $3,315.
D)   $4,315.
E)   $4,420.F) C) and E)
G) A) and E)

Question 6

Days' payable outstanding measures how long, on average, a company takes to pay its creditors.

Accepted Answer

A) True 
 B)False

Question 7

Lean principles include all of the following except:

Accepted Answer

A)   Pull production
B)   Large batch sizes
C)   Zero waste
D)   Value streams
E)   Zero defectsF) B) and D)
G) A) and D)

Question 8

A company reports ending accounts payable of $1,271 and cost of goods sold of $11,315. Compute days' payable outstanding.

Accepted Answer

A)   30 days
B)   45 days
C)   36 days
D)   33 days
E)   41 daysF) C) and E)
G) A) and B)

Question 9

Using the information below, compute cycle efficiency:   Process time 6.0 hours  Inspections time 0.5 hours  Move time 0.6 hours  Wait time 0.9 hours  Storage time 72.0 hours \begin{array}{lr}	ext { Process time } & 6.0 	ext { hours } \	ext { Inspections time } & 0.5 	ext { hours } \	ext { Move time } & 0.6 	ext { hours } \	ext { Wait time } & 0.9 	ext { hours } \	ext { Storage time } & 72.0 	ext { hours }\end{array} Process time  Inspections time  Move time  Wait time  Storage time ​6.0 hours 0.5 hours 0.6 hours 0.9 hours 72.0 hours ​

Accepted Answer

A)   93.8%.
B)   81.3%.
C)   100.0%.
D)   75.0%.
E)   88.8%. F) A) and B)
G) C) and D)

Question 10

Challenges of using push production include all of the following except:

Accepted Answer

A)   Increased risk of obsolescence.
B)   More defects.
C)   Increased storage costs.
D)   Production occurs just-in-time.
E)   Stock-outs and lost sales.F) B) and C)
G) A) and E)

Question 11

The triple bottom line focus on the "planet" works to reduce waste by striving for:

Accepted Answer

A)   Closed-loop supply chain.
B)   Increased profits.
C)   Improved working conditions.
D)   Automated processes.
E)   Lower inventory levels.F) A) and B)
G) B) and E)

Question 12

Alvi reports ending work in process inventory of $341 and cost of goods sold of $11,315. Compute days' sales in work in process inventory.

Accepted Answer

A)   10 days
B)   11 days
C)   15 days
D)   8 days
E)   17 daysF) A) and E)
G) All of the above B

Question 13

Kang Co. reports work in process inventory of $1,085 and cost of goods sold of $56,575. Days' sales in work in process inventory is:

Accepted Answer

A)   6 days
B)   5 days
C)   4 days
D)   7 days
E)   8 daysF) A) and E)
G) B) and D)

Question 14

Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh started 38 wheelchairs and completed 35 wheelchairs. The beginning balance in work in process inventory is zero. The ending balance in work in process inventory is:

Accepted Answer

A)   $2,340.
B)   $1,105.
C)   $925.
D)   $1,315.
E)   $975.F) All of the above
G) A) and B) E

Question 15

If accounts payable is $1,116 and cost of goods sold is $11,315, what is days' payable outstanding?

Accepted Answer

A)   30 days
B)   45 days
C)   36 days
D)   33 days
E)   40 daysF) C) and D)
G) B) and C)

Question 16

Which of the following statements is correct concerning the elements of cycle time?

Accepted Answer

A)   Move time is the time spent moving (1)  raw materials from storage to production and (2)  goods in process from one factory location to another factory location.
B)   Inspection time is the time spent producing the product.
C)   Process time is considered non-value-added time.
D)   Wait time is considered value-added time.
E)   Cycle efficiency is the ratio of non-value-added time to total cycle time.F) A) and E)
G) A) and B)

Question 17

Only manufacturers use the lean business model.

Accepted Answer

A) True 
 B)False

Question 18

Greun Company has 11 days' sales in work in process inventory based on the current year's cost of goods sold of $11,680. What is Greun's work in process inventory?

Accepted Answer

A)   $352
B)   $422
C)   $350
D)   $465
E)   $310F) A) and B)
G) C) and E)

Question 19

Value streams include all activities needed to create customer value.

Accepted Answer

A) True 
 B)False

Question 20

Beake Company has 15 days' sales in work in process inventory based on the current year's cost of goods sold of $11,315. What is Beake's work in process inventory?

Accepted Answer

A)   $310
B)   $470
C)   $350
D)   $465
E)   $510F) D) and E)
G) C) and D)

Exam 15: Lean Principles and Accounting

Correct Answer
verified
E

A company reports ending accounts payable of $1,440 and cost of goods sold of $11,680. Compute days' payable outstanding.

Correct Answer
verified

Haupt Inc. manufacturers water pumps. Each pump requires $155 of raw materials and $315 of conversion costs. Each pump is sold for $725. Last month Haupt produced and sold 69 pumps. The journal entry to record cost of goods sold would include:

Correct Answer
verified

If work in process inventory is $900 and cost of goods sold is $16,425, what is days' sales in work in process inventory?

Correct Answer
verified

Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh completed 35 wheelchairs and sold 32 wheelchairs. The ending balance in finished goods inventory is:

Correct Answer
verified

Days' payable outstanding measures how long, on average, a company takes to pay its creditors.

Correct Answer
verified

Lean principles include all of the following except:

Correct Answer
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A company reports ending accounts payable of $1,271 and cost of goods sold of $11,315. Compute days' payable outstanding.

Correct Answer
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Correct Answer
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Challenges of using push production include all of the following except:

Correct Answer
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The triple bottom line focus on the "planet" works to reduce waste by striving for:

Correct Answer
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Alvi reports ending work in process inventory of $341 and cost of goods sold of $11,315. Compute days' sales in work in process inventory.

Correct Answer
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B

Kang Co. reports work in process inventory of $1,085 and cost of goods sold of $56,575. Days' sales in work in process inventory is:

Correct Answer
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Correct Answer
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E

If accounts payable is $1,116 and cost of goods sold is $11,315, what is days' payable outstanding?

Correct Answer
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Which of the following statements is correct concerning the elements of cycle time?

Correct Answer
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Only manufacturers use the lean business model.

Correct Answer
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Greun Company has 11 days' sales in work in process inventory based on the current year's cost of goods sold of $11,680. What is Greun's work in process inventory?

Correct Answer
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Value streams include all activities needed to create customer value.

Correct Answer
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Beake Company has 15 days' sales in work in process inventory based on the current year's cost of goods sold of $11,315. What is Beake's work in process inventory?

Correct Answer
verified

Exam 15: Lean Principles and Accounting

Correct AnswerverifiedE

A company reports ending accounts payable of $1,440 and cost of goods sold of $11,680. Compute days' payable outstanding.

Correct AnswerverifiedShow Answer

Haupt Inc. manufacturers water pumps. Each pump requires $155 of raw materials and $315 of conversion costs. Each pump is sold for $725. Last month Haupt produced and sold 69 pumps. The journal entry to record cost of goods sold would include:

Correct AnswerverifiedShow Answer

If work in process inventory is $900 and cost of goods sold is $16,425, what is days' sales in work in process inventory?

Correct AnswerverifiedShow Answer

Singh Company manufacturers wheelchairs. Each wheelchair requires $325 of raw materials and $780 of conversion costs. Each wheelchair is sold for $1,500. Last month Singh completed 35 wheelchairs and sold 32 wheelchairs. The ending balance in finished goods inventory is:

Correct AnswerverifiedShow Answer

Days' payable outstanding measures how long, on average, a company takes to pay its creditors.

Correct AnswerverifiedShow Answer

Lean principles include all of the following except:

Correct AnswerverifiedShow Answer

A company reports ending accounts payable of $1,271 and cost of goods sold of $11,315. Compute days' payable outstanding.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Challenges of using push production include all of the following except:

Correct AnswerverifiedShow Answer

The triple bottom line focus on the "planet" works to reduce waste by striving for:

Correct AnswerverifiedShow Answer

Alvi reports ending work in process inventory of $341 and cost of goods sold of $11,315. Compute days' sales in work in process inventory.

Correct AnswerverifiedB

Kang Co. reports work in process inventory of $1,085 and cost of goods sold of $56,575. Days' sales in work in process inventory is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedE

If accounts payable is $1,116 and cost of goods sold is $11,315, what is days' payable outstanding?

Correct AnswerverifiedShow Answer

Which of the following statements is correct concerning the elements of cycle time?

Correct AnswerverifiedShow Answer

Only manufacturers use the lean business model.

Correct AnswerverifiedShow Answer

Greun Company has 11 days' sales in work in process inventory based on the current year's cost of goods sold of $11,680. What is Greun's work in process inventory?

Correct AnswerverifiedShow Answer

Value streams include all activities needed to create customer value.

Correct AnswerverifiedShow Answer

Beake Company has 15 days' sales in work in process inventory based on the current year's cost of goods sold of $11,315. What is Beake's work in process inventory?

Correct AnswerverifiedShow Answer

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E

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B

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E

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