Suza IncIs a Lean Manufacturer of Snow Blowers

question 14

Essay

Suza Inc.is a lean manufacturer of snow blowers.Each snow blower requires $300 of raw materials.Estimated conversion costs to produce 4,000 units in this year are $600,000.During the first six months of this year Suza produced 300 snow blowers and sold 280.Each snow blower is sold for $900.
Required
1.Compute the conversion rate per snow blower.
2.Prepare journal entries to record (a)the purchase of raw materials on credit,(b)applied conversion costs to production,(c)sale of snow blowers on credit,and (d)cost of goods sold and finished goods inventory.

Differentiate between planned, unplanned, a priori, and post hoc comparisons.

Interpret the results of an F-ratio in hypothesis testing.

Apply the correct decision rule for rejecting or not rejecting the null hypothesis based on the F-ratio and significance level.

Comprehend the impact of the size of the groups or sample on the F-ratio.

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Definitions:

Working Conditions

The environment and all existing circumstances affecting labor in the workplace, including job hours, physical aspects, legal rights and responsibilities.

Forced Labour

Work that individuals are compelled to do against their will under threat of punishment or some form of penalty.

Ethical Dilemma

Arises when action must be taken but there is no clear ‘ethically right’ option.

Managerial Decision

Choices or judgments made by managers within an organization, which can impact operations, strategies, and employee welfare.