Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only to one customer's lean cell for the coming year. Projected labor and overhead, $5,079,600; materials costs, $35 per unit. Planned production included 5,312 hours to produce 16,600 motor drives. Actual production for August was 1,870 units, and motor drives shipped amounted to 1,320 units.

From the foregoing information, determine the manufacturing cost per unit.

a.$341.00

b.$991.25

c.$271.00

d.$306.00

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Schedule of Activity Costs
Quality Control Activities	Activity Cost
Process audits	$50,000
Training of machine operators	28,000
Processing returned products	19,000
Scrap processing (disposal)	25,000
Rework	8,000
Preventative maintenance	30,000
Product design	46,000
Warranty work	12,000
Finished goods inspection	23,000

From the above schedule of activity costs, determine the value-added costs.

a.$191,000

b.$104,000

c.$156,000

d.$177,000

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Schedule of Activity Costs
Quality Control Activities	Activity Cost
Process audits	$50,000
Training of machine operators	28,000
Processing returned products	19,000
Scrap processing (disposal)	25,000
Rework	8,000
Preventative maintenance	30,000
Product design	46,000
Warranty work	12,000
Finished goods inspection	23,000

From the above schedule of activity costs, determine the appraisal costs.

a.$104,000

b.$73,000

c.$23,000

d.$50,000

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$48,800
Training of machine operators	28,200
Processing returned products	16,300
Scrap processing (disposal)	24,900
Rework	7,300
Preventative maintenance	30,500
Product design	42,300
Warranty work	9,500
Finished goods inspection	22,700

From the above schedule of activity costs, determine the value-added costs.

a.$149,800

b.$230,500

c.$172,500

d.$182,000

Schedule of Activity Costs
Quality Control Activities	Activity Cost
Process audits	$50,000
Training of machine operators	28,000
Processing returned products	19,000
Scrap processing (disposal)	25,000
Rework	8,000
Preventative maintenance	30,000
Product design	46,000
Warranty work	12,000
Finished goods inspection	23,000

From the above schedule of activity costs, determine the prevention costs.

a.$104,000

b.$30,000

c.$74,000

d.$76,000

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Squirrel Co. operates in a lean manufacturing environment. For June production, Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. The journal entry required to record this transaction is:

a.

Cost of Goods Manufactured36,000

Accounts Payable36,000

b.

Raw and In Process Inventory36,000

Accounts Payable36,000

c.

Finished Goods36,000

Accounts Payable36,000

d.

Raw Materials Inventory36,000

Accounts Payable36,000

Schedule of Activity Costs

Quality Control Activities	Activity Cost
Process audits	$48,100
Training of machine operators	28,000
Processing returned products	18,600
Scrap processing (disposal)	25,900
Rework	8,000
Preventative maintenance	29,900
Product design	41,400
Warranty work	7,500
Finished goods inspection	23,900

From the above schedule of activity costs, determine the internal failure costs.

a.$101,400

b.$60,000

c.$33,900

d.$27,120