20.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, $7,370,000; materials costs, $28 per unit. Planned
production included 4,000 hours to produce 27,500 motor drives.
Actual production for August was 1,600 units, and motor drives
shipped amounted to 1,380 units.
From the foregoing information, determine the amount of the
conversion costs charged to Raw and In Process Inventory during
August.
a.$369,840
b.$408,480
c.$473,600
d.$428,800
Solution:
Projected conversion cost = $7,370,000
Planned production = 27500 motor drives
conversion cost per unit = $7,370,000 / 27500 = $268 per unit
Acutal production for August = 1600 units
Conversion cost charged to Raw and in process inventory during august = 1600 * $268 = $428,800
Hence option d is correct.
20.Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the...
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, $7,370,000; materials costs, $28 per unit. Planned production included 4,000 hours to produce 27,500 motor drives. Actual production for August was 1,600 units, and motor drives shipped amounted to 1,380 units....
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, $5,380,200; materials costs, $26 per unit. Planned production included 5,856 hours to produce 18,300 motor drives. Actual production for August was 1,890 units, and motor drives shipped amounted to 1,480 units....
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, $5,504,700; materials costs, $34 per unit. Planned production included 5,664 hours to produce 17,700 motor drives. Actual production for August was 1,970 units, and motor drives shipped amounted to 1,430 units....
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, $4,307,600; materials costs, $27 per unit. Planned production included 5,696 hours to produce 17,800 motor drives. Actual production for August was 1,940 units, and motor drives shipped amounted to 1,340 units....
Lean Accounting Com-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell. For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell: Conversion Cost Categories Budget Labor $69,700 Supplies 26,400 Utilities 9,500 Total $105,600 Com-Tel plans 1,600 hours of production for the Lion Model cell for the year. The materials...
Lean Accounting Com-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell. For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell: Conversion Cost Categories Budget $63,400 24,000 8,600 $96,000 Utilities Total Com-Tel plans 1,600 hours of production for the Lion Model cell for the year. The materials cost is...