understand the trade offs involved in supply chain function related to JIT, inventory management purchasing and delivery lead times and quality. Supply Chain Management requires a broad view of the entire flow from purchasing to final delivery to the customer. Supply Chain Management is becoming increasingly more important due to the following factors: 1. Implementation of JIT systems. 2. Emphasis in reduction in inventories. 3. Emphasis in reduced order cycles and reduced lead times. 4. Continuous
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Goel | Q. 3.2 Inventory accounting: Differentiate between FIFO and LIFO. Ans 3.2 LIFO and FIFO are the 2 most common inventory valuation methods and affects both the balance sheet and income statement. LIFO: last out, or LIFO, calls for the firm to attribute any sale made to the most recently acquired and most expensive inventory. During the inflationary prices period, the firm using this method would have the highest cost of goods sold, the lowest net income and lowest inventory value. FIFO:
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used to record transactions, adjusting journal entries are used to recognize costs and revenues in the appropriate period, financial statements are prepared, and closing entries are recorded. Raw material purchases are recorded in the raw material inventory account if the perpetual inventory method is used, or the raw materials purchases account if the periodic inventory method is used. For example, using the periodic inventory method, the purchase of $750 of raw materials on account is recorded as an
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Work-in-process inventory (January 1) $ 140,400 Work-in-process inventory (March 31) 171,000 Finished goods inventory (January 1) 540,000 Finished goods inventory (March 31) 510,000 Direct materials used 378,000 Indirect materials used 84,000 Direct manufacturing labor 480,000 Indirect manufacturing labor 186,000 Property taxes on manufacturing plant building 28,800 Salespersons' company vehicle costs 12,000
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Sales are down by 30% - Expenses have increased by 25% - Customers are leaving for other manufactures (loss in market share) - Service levels are low and customer cancellations and backorders are increasing - Inventory levels are very high, resulting in increasing inventory costs Purpose The purpose of this study is to determine the following: 1. What are the goals that Gary Lemming has been given by his CEO? How is the current performance impacting on Steel Works’ performance? 2. What
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the request of inventory methods of Last In/ First Out and First In/ First Out overview. The team researched and discussed the contrast between the two inventory methods.. The choice of Last In/ First Out and First In/First Out will influence the profit and loss statements. The company should continue with using Last In/ First Out if the costs remain the same, but we should move to First In/First Out if the costs increase, as expected. The question of whether the company’s Cost of Goods Sold and
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Inventory management is a core operations management activity. Good inventory management is important for the successful operation of most businesses and their supply chain. Operations, marketing, and finance have interests in good inventory management. Poor inventory management hampers operations, diminishes customer satisfaction, and increases operating costs (Stevenson, 2009, pg. 549). Inventory is a stock or store of goods. Too many companies have unsatisfactory inventory management
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the company purchases inventory from a vendor and the company sells the inventory to the customer. Finally the company collects cash from customers. Objectives of merchandising operations Account for the sale of inventory Use sales and gross profit to evaluate a company Adjust and close the accounts of a merchandising business Prepare a merchandiser’s financial statements Use gross profit percentage and inventory turnover to evaluate a business Accounting inventory Merchandising companies
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ACCT FINANCIAL ACCOUNTING Time Allowed: 2 Hours Question 1 Recording Transactions (20 marks) For each of the following ten independent events (parts a to j) involving Partnare Limited in the month of June, prepare the journal entry (if necessary) to record the event. Financial statements are being prepared as at 30 June. If you believe that no entry is necessary, clearly write ‘No Entry’. A blank response will be marked as incorrect. Narrations are not necessary. Partnare Limited
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manage the drivers of supply chain performance. Findings - The whole study concluded that there are six drivers of supply chain performance in literature that need to be managed to enhance organizational performance. These drivers are; Facilities, Inventory, Transportation, Information, Sourcing and pricing. These drivers are closely related with each other and have a greater impact on organizational performance. Organizations need to find a situation where both efficiency and responsiveness in supply
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