User Account

All Pages

What other nonfinancial and qualitative factors bremer

Assignment Help Cost Accounting
Reference no: EM132775795

The Bremer Corporation manufactures cordless telephones. Bremer is planning to implement a JIT production system, which requires annual tooling costs of P150,000.

Bremer estimates that the following annual benefits would arise from JIT production.

a. Average inventory will decline by P700,000, from P900,000 to P200,000.
b. Insurance, space, materials handling, and setup costs, which currently total P200,000, would decline by 30%.
c. The emphasis on quality inherent in JIT systems would reduce rework costs by 20%. Bremer currently incurs P350,000 on rework.
d. Better quality would enable Bremer to raise the prices of its products by P3 per unit. Bremer sells 30,000 units each year.

Bremer required rate of return on inventory investment is 12% per year.

Required:

Problem 1. Calculate the net benefit or cost to the Bremer Corporation from implementing a JIT production system.

Problem 2. What other nonfinancial and qualitative factors should Bremer consider before deciding on whether it should implement a JIT system?

Reference no: EM132775795

Questions Cloud

What are the major types of nutrients animals get from food : What are the major types of nutrients animals get from food? How are these nutrients used by animals?
Identify an ethical issue that is inherent with research : Identify an ethical issue that is inherent with research. How does this issue impact research? What are recommendations to avoid ethical issues when engaging.
List the four major macromolecules : List the four major macromolecules - give the function of each category (Give the highlights for each molecules)
Examine how to craft each component of an annotation : An annotated bibliography is a document containing selected sources accompanied by a respective annotation. Each annotation consists of a summary, analysis.
What other nonfinancial and qualitative factors bremer : What other nonfinancial and qualitative factors should Bremer consider before deciding on whether it should implement a JIT system?
Calculate the growth rate of the bacterial population : Assuming that the bacteria reproduce at a constant rate, calculate the growth rate of the bacterial population for the given time interval.
Result in a researcher being intellectually : Science is a cooperative endeavor, which of the following is most likely to result in a researcher being intellectually looked down upon by other scientists?
What other factors should tristan consider before choosing : What other factors should Tristan consider before choosing a supplier? The Donnie Corporation and the Thea Corporation manufacture fairly similar remote-control
What is the independent variable : What is the independent variable, dependent variable, control variables and materials needed to test the factors that affects enzyme activity

Reviews

Write a Review

Cost Accounting Questions & Answers

  Does the contribution margin play

Does the contribution margin play any role in these decisions - Explain why we agree or disagree with the following statement, "Companies should always make

  What the company should report cogs of

Peter Senen Company has over applied overhead of P60,000 for the year. In its year end Income statement, the Company should report COGS of

  Credit account titles are automatically indented

During the current month, Reyes Corporation completed Job 310 and Job 312. Job 310 cost $64,680 and Job 312 cost $48,410. Job 312 was sold on account for $89,710.Journalize the entries for the completion of the two jobs and the sale of Job 312.(Credi..

  Organize the transaction in accounts

Midwest Corp completed the following transactions in 2012, the first year of operation.

  What should the plant controller do

How operating income would improve by $280,000 just by classifying the preceding costs as product costs instead of period expenses.

  What is predetermined overhead rate per direct labor hour

Labor hours are used to determine the predetermined overhead rate. What is the predetermined overhead rate per direct labor hour?

  Record the net variance allocated to ending inventories

Patel and Sons Inc. uses a standard cost system to apply factory, Record the net variance allocated to ending inventories and Cost of goods sold.

  What are the merits of qualitative

Which is better for assessing organizational culture to comprehensively understand an organization's values and goals? What are the merits of qualitative

  What actions could an organization take to better manage

What actions could an organization take to better manage and thus prevent these potential ethical violations from happening based on the concepts

  Should client use the equation to predict next year

The output of a regression analysis showed, Should client use the equation (Y = $126,078 + $122.12X) to predict next year's R & M costs?

  Do the correct adjustments

Trial Balance figures Merchandise inventory 27,050(dr) Unearned sales revenue 4,000(cr) Sales 263,770(cr) Cost of goods sold 171,225(dr) Interest Expense

  Prepare the journal entry if any to record the impairment

The expected future net cash flows from the use of the asset are expected to be $550,000. The fair value of the equipment is $440,000.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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