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Cost Management for JIT Environments Ch 11 multiple choice

This is for an college level accounting II class. I am really struggling with the solutions to these multiple choice questions. Please help.

1. Long lead times are the result of:

a. long setup times
b. large batch sizes
c. large inventories
d. all of the above

2. How are the objectives of Just-in-Time (JIT) manufacturing achieved?

a. Product-oriented production layout
b. Employee involvement
c. Supplier partnering
d. All of the above

3. Which of the following drive work in process inventory levels higher?

a. Machine breakdowns
b. Production rate losses
c. Rework processing
d. All of the above

4. Which of the following is characteristic of a just-in-time (JIT) system?

a. Fewer work in process account transactions
b. Work in process and raw materials accounts combine
c. Elimination of the direct labor account
d. All of the above

5. Which of the following is characteristic of a traditional cost system?

a. Many work in process account transactions
b. Reliance on financial performance measures
c. Many process control points
d. All of the above

6. Which of the following is best suited to providing timely and focused performance information?

a. Nonfinancial information
b. Financial accounting information
c. Cost accounting information
d. Variance analysis

7. Foley Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the month of August: labor and overhead, $6,400,000; materials costs, $160,000. Planned production included 800 hours to produce 6,400 motor drives. However, actual production was 5.200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted cell conversion cost per hour.

a. $8,800
b. $800
c. $7,200
d. $8,000

8. Foley Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the month of August: labor and overhead, $6,400,000; materials costs, $160,000. Planned production included 800 hours to produce 6,400 motor drives. However, actual production was 5.200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted cell conversion cost per unit.

a. $250.00
b. $267.00
c. $308.00
d. $317.00

9. Foley Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the month of August: labor and overhead, $6,400,000; materials costs, $160,000. Planned production included 800 hours to produce 6,400 motor drives. However, actual production was 5.200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the budgeted materials cost per unit.

a. $25.00
b. $26.67
c. $30.77
d. $31.75

10. Foley Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a just-in-time cell for each customer. The following information relates only to one customer's just-in-time cell for the month of August: labor and overhead, $6,400,000; materials costs, $160,000. Planned production included 800 hours to produce 6,400 motor drives. However, actual production was 5.200 units, and motor drives shipped amounted to 5,040 units. From the foregoing information, determine the manufacturing cost per unit.

a. $292.00
b. $275.00
c. $333.00
d. $342.00

Solution Preview

1. Long lead times are the result of:

a. long setup times
b. large batch sizes
c. large inventories
d. all of the above
Answer (d) All the above

2. How are the objectives of Just-in-Time (JIT) manufacturing achieved?

a. Product-oriented production layout
b. Employee involvement
c. Supplier partnering
d. All of the above

Answer:d all the above

3. Which of the following drive work in process inventory levels higher?

a. Machine breakdowns
b. Production rate losses
c. Rework processing
d. All of the above

Answer: d (all the above)

4. Which of the following is characteristic of a just-in-time (JIT) system?

a. Fewer work in process account transactions
b. Work in process and raw materials accounts combine
c. Elimination of the direct labor account
d. All of the above

Answer (d) Fewer work in process account transactions

5. Which of the following is characteristic of a traditional cost system?

a. Many work in process account transactions
b. Reliance on financial performance measures
c. Many process control points ...

$2.19