$5.00 Manufacturing Statements and Lean Business Concepts Exercise 18-13, Problem 18-2A

• From Economics: Accounting
• Due on Oct. 16, 2008
• Asked on Oct. 16, 2008 at 08:41:15AM

Q:

Exercise 18-13
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 . . . . . . . . . . 44,700
Goods in process inventory, Dec. 31, 2005 . . . . . . . 43,500
Finished goods inventory, Dec. 31, 2005 . . . . . . . . . . 69,300

Problem 18-2A
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.

Restaurant TQM JIT CI
1.
2.

 

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