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s 1 and 19 Homework (Managerial) Help Save & Exit Submit Check my work Marshall Company is a large manufacturer of office furniture. The company
s 1 and 19 Homework (Managerial) Help Save & Exit Submit Check my work Marshall Company is a large manufacturer of office furniture. The company has recently adopted lean accounting and has identified two value streams office chairs and office tables. Total sales in the most recent period for the two streams are $250 and $315 million, respectively In the most recent accounting period, Marshall had the following operating costs, which were traced to the two value streams as follows (in thousands) Chairs Tables Operating costs: Materials Labor Equipment-related costs Occupancy costs $ 16,60 124, 000 44,680 11,400 $ 14,680 97,00 63, ese 12,700 . In addition to the traceable operating costs, the company had manufacturing costs of $121750 million, and selling and administrative costs of $20 million that could not be traced to either value stream. Due to the implementation of lean methods, the firm has been able to reduce Inventory in both value streams significantly. Marshall has calculated the fixed cost of prior period inventory that is included in the current income statement to be $6.0 million for the office chair stream and $200 million for the office table stream Prey 1 of 2 Next > 2 6 10 ENG MARSHALL COMPANY Value Stream Income Statement (000s) Office Chairs Omice Tables $ 250,000 5 315,000 Total 565,000 5 34:23 Sales Operating costs Material Labor Equipment-related costs Occupancy costs $ 14,600 97.000 63,000 12,700 Total operating costs Value-stream profit before inventory change 196,600 187,300 $ 383,900 0 10 0 $ 0 $ Value-stream profit Less: Nontraceable costs Total nontraceable fixed costs Operating income S S 0 0 tey 1 of 2 3 Next > to search 00 am W
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