Please help with 1-3. ASAP
Lean Accounting Com-Tel Inc. manufactures and assembles two modeis of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell. For the year, Com-Tel Inc. budgeted these costs for the Lon Modal production cell: Com-Tel plans 2,200 hours of production for the Lon Model celi for the year. The materials cost is $56 per unit. Each assembly requires 20 minutes of cell assembly time, There was no May 1 inventory for either Raw ond In Procers inventory or Finished Goods Inventory. The following summary events took place in the Lion Model cell during May: 3. Electronic parts were purchased to produce 7,500 Lion Model assemblies in May. b. Conversion costs were applied for 7,150 units of production in May. c. 7,010 units were completed and transferred to finished goods in May. d. 6,800 units were shipped to customers at a price of $264 per unit. If required, round your answers to the nearest cent. Lean Principles Bright Night, inc., manufactures light bulb5. Its purchasing policy requires that the purchasing agents place each quarter's purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ablity to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days). To make its bulb products, Bnight Night requires 48,600 pounds of glass per quarter. Bright Night recelved two glass bids for the third quarter, as followis - Central Glass Company: $22.00 per pound of glass. Delivery schedule: 48,600(540 lbs. x90 days) pounds at the beginning of July to last for 3 months. - thaca Glass Company: $22.15 per pound of plass. Delivery schedule: 540 pounds per woiking day ( 90 days in the quarter). Bright Night accepted Central Giass Company's bid because it was the low-cost bid. 1. A manufacturing company gets quotes from each suppiier and aliocates the purchase order to the company which quotes the lowest price with the expected quality. Is this process effective in long run? Identify reason that supports the answer. a. Yes b. No Reason: a. The policy is effective as it lowers the cost of purchase. b. The policy considers the quoted price and the quality of the product is ignored. c. The policy of the company is not practically viable as it is not building long-term relationships with its suppliers. The reputation of the company may be affected. d. Supplier relationships are not fequired as the products are purchased for the quarter alone. 2. A manufacturing company gets quotes from each supplier and allocates the purchase order to the company which quotes the lowest price with the expected quality. Are there any additional costs that are involved in bulk purchase for the quarter? Identify reason that supports the answer. a. Yes b. No Reason: a. The cost of storage, obsolescence, material management and wastages are ignored in this concept. b. The cost of storage, obsolescence, material management and wastages are included in the purchase cost computation. c. The cost related to quality can be compensated as the price of the material is low. d. The responsibility of the manager is to get the lowest bid for the product and all other intormation is irrelevant. 3. Considering only inventory financing costs, what is the addional cost per pound of Central Giass Company's bid if the annual cost of money is 8 es? (Hint: Determine the average value of glass inventory held for the quarter and multiply by the quarterly interest charge, then divide by the number of pound5.) Round to the nearest cent. per 1b
