1. Toyota Motor Corporation is optimizing its manufacturing processes to reduce costs. The following figures are for the latest production cycle:

Requirements:

• Calculate the COGS using the formula: COGS = Direct Materials + Direct Labor + Factory Overhead.
• Provide a detailed COGS table with the following values:
  • Direct Materials: $500,000
  • Direct Labor: $300,000
  • Factory Overhead: $200,000

• Recommend strategies to reduce COGS by 10% through efficiency improvements.
• Justify how reducing COGS aligns with Lean manufacturing principles.
• Demonstrate the impact on Toyota's income statement and balance sheet with hypothetical financial projections.

COGS Table:

Category	Amount ($)
Direct Materials	$500,000
Direct Labor	$300,000
Factory Overhead	$200,000
Total COGS	$1,000,000