Estimate financial benefits associated with adoption of jit

Assignment Help Financial Accounting
Reference no: EM13876396

Relevant Cost Analysis-Conversion to JIT As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they would like to have some data to inform their decision making in this regard. You are provided with the following data:

Item

Existing Situation

After Adopting JIT

Manufacturing Costs as Percentage of Sales:

Product-level support costs

12%

5%

Variable manufacturing overhead

28%

10%

Direct materials

30%

20%

Direct manufacturing labor

22%

15% (Continued)

Other Financial Data:

Sales revenue

$1,350,000

$1,650,000

Inventory of WIP

$180,000

$30,000

Other Data:

Manufacturing cycle time

60 days

30 days

Inventory financing cost (perannum)

10%

10%

Required: You have been asked, in conjunction with your position as the management accountant for the company, to construct an Excel spreadsheet that can be used to estimate the financial benefits associated with the adoption of JIT.

Reference no: EM13876396

Questions Cloud

Dimensional array lab : Change the program (AirlineDriver.java) to assign passenger seats in an airplane. Chesapeake Airlines is a small commuter airline with seats for 20 passengers in 5 rows of 4 seats each. Here is the layout:
East and west. bmi has a cost of capital : Back Mountain Industries (BMI) has two divisions: East and West. BMI has a cost of capital of 15%. Selected financial information (in thousands of dollars) for the first year of business follows:
Provide a dollar estimate of the annual cost savings : Provide a dollar estimate of the annual cost savings associated with the recently enacted quality improvements. Show calculations.
Did anyone different get admitted : Is this enough information to determine who should get into the University? If not what other information would you want and why
Estimate financial benefits associated with adoption of jit : You have been asked, in conjunction with your position as the management accountant for the company, to construct an Excel spreadsheet that can be used to estimate the financial benefits associated with the adoption of JIT.
Summarize the strategic perspectives of the two companies : Summarize the strategic perspectives of the two companies and what assumptions have led each company to adopt a different route to China?
Competitive and successful for employees : Reflect back to the material covered in the chapters. You are the employer of a small business consisting of 150 employees.  You wish to introduce a benefits program for your employees for the first time. In at least 250 words, answer the following q..
Why do you believe that musician go back to traditonal music : Although, they are all part of the American mainstream, why do you believe that often Chicano musicians, often go back to their traditonal Mexican musical heritage as a source of inspiration
Pay decisions at performance sports : Pay Decisions at Performance Sports  Read the above case study.  Using the material you have acquired from the chapters, answer the questions at the end of the case study in at least 500 words.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd