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    Randa Company - account balances

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    Given the following selected account balances of Randa Company, prepare its manufacturing statement in proper form for the year ended on December 31, 2005. Include a listing of the individual overhead account balances in this statement.

    Problem 18-2A Lean business concepts

    A trip through a drive-up window of any leading fast-food restaurant is useful in understanding concepts such as total quality management (TQM), just-in-time (JIT), and continuous improvement (CI). Each restaurant can be viewed as a small manufacturing center. List two fast-food restaurants you are familiar with in the first column of the following table (e.g., McDonald's, Taco Bell, Burger King, and KFC). Record in the table how each company is putting each of these lean business concepts into action, both favorably and unfavorably.

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    Exercise 18-13
    Manufacturing statement preparation

    Given the following selected account balances of Randa Company, prepare its manufacturing statement in proper form for the year ended on December 31, 2005. Include a listing of the individual overhead account balances in this statement.

    Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000
    Raw materials inventory, Dec. 31, 2004 . . . . . . . . . . 39,000
    Goods in process inventory, Dec. 31, 2004 . . . . . . . 55,900
    Finished goods inventory, Dec. 31, 2004 . . . . . . . . . . 64,750
    Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 177,600
    Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000
    Factory computer supplies used . . . . . . . . . . . . . . . 19,840
    Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000
    Repairs?Factory equipment . . . . . . . . . . . . . . . . . 7,250
    Rent cost of factory building . . . . . . . . . . . . . . . . . . 59,000
    Advertising expenses . . . . . . . . . . . . . . . . . . . . . . . 96,000
    General and administrative expenses . . . . . . . . . . . . 131,300
    Raw materials inventory, Dec. 31, 2005 . ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare its manufacturing statement for Randa Company and give lean business concepts to given fast food company.

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