Problem 1:
a. Identify the five steps in the lean thinking model.
b. Which of these steps do you think is the most challenging for the organization?
Explain your reasoning. Give details.
Problem 2:
Julie Jones was hired by a popular fast-food restaurant as an order taker and cashier. Shortly after taking the job, shewas shocked to overhear an employee bragging to a friend about shortchanging customers. She confronted the employee who then snapped back: "Mind your awn business. Besides, everyone does it and the customers never miss the money."Julie didn't know how to respond to this aggressive stance.
What would be the practical consequences on the fast-food industry and on consumers if cashiers generally shortchanged customers at every opportunity?
Problem 3:
You have been given a summer job as an intern at Utah Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank fora loan to help itfinance its growth.
The bankrequires financial statements before approving such a loan. You have been asked to help prepare classification of the following list of costs:
1. Depreciation on salespersons' cars
2. Rent on equipment used in the factory
3. Lubricants used for machine maintenance
4. Salaries of personnel who work in the finished goods warehouse
5. Soap and paper towels used by factory workers at the end of a shift
6. Factory supervisors' salaries
7. Heat,water, and power consumed in thefactory
8. Materials used for boxing products for shipment overseas (units are not normally boxed) _ .
9. Advertising costs
10. Workers' compensation insurance for factory employees
11. Depreciation on chairs and tables in the factory lunchroom
12. The wages of the receptionist in the administrative offices
13. Cost of leasing the corporate jet used by the company's executives
14. The cost of renting rooms at a Florida resort for the annual sales conference
15. The cost of packaging the company's product
Required: Classify the above costs as either product costs or period costs.
Problem 4:
Watertoys Corporation manufactured a variety of products in its factory. Data for the most recent month's operations appear below:
Beginning raw materials inventory $40,132
Purchases of raw materials $395,952
Ending raw materials inventory $61,322
Direct labor $177,450
Manufacturing overhead $505,325
Beginning work in process inventory $235,400
Ending work in process inventory $215,900
Prepare a schedule of cost of goods manufacturing for the company for the month. Left align all rows for formatting purposes.