ans a | |||
Budgeted cell conversion cost per hour | |||
180600/2150 | $84 | per hour | |
ans b | |||
Conversion cost per unit | $21 | per unit | |
84*15/60 | |||
ans c | |||
Transation | Accounts title | Dr | Cr |
1 | Work In process Inventory | 81000 | |
Raw material (600*135) | 81000 | ||
2 | Work In process Inventory | 12285 | |
Conversion cost | 12285 | ||
(585*21) | |||
3 | Finished Goods Inventory | 91260 | |
Work In process Inventory | 91260 | ||
585*(135+21) | |||
4 | Accounts receivable (575*18) | 106950 | |
Sales | 106950 | ||
Cost of good sold | 89700 | ||
Finished Goods Inventory | 89700 | ||
575*(135+21) |
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost...
Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $30. The budgeted conversion cost for the year is $96,900 for 1,700 production hours. A unit of Style Omega requires 10 minutes of cell production time. The following transactions took place during June: Materials were acquired to assemble 640 Style Omega units for June. Conversion costs were applied to 640 Style Omega units of production. 600 units of Style...
Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $34. The budgeted conversion cost for the year is $172,800 for 3,200 production hours. A unit of Style Omega requires 12 minutes of cell production time. The following transactions took place during June: Materials were acquired to assemble 770 Style Omega units for June. Conversion costs were applied to 770 Style Omega units of production. 720 units of Style...
Ever-Brite Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style BB-01 has a materials cost per unit of $135. The budgeted conversion cost for the year is $180,600 for 2,150 production hours. A unit of Style BB-01 requires 15 minutes of cell production time. The following transactions took place during December: Dec. 1Materials were acquired to assemble 600 Style BB-01 units for December 3 Conversion costs were applied to 600 Style BB-01 units of production 14 585 units of...
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $729,300 for 1,870 production hours. Each unit requires 20 minutes of cell process time. During March, 950 DVR players were manufactured in the cell. The materials cost per unit is $62. The following summary transactions took place during March: Materials were purchased for March production. Conversion...
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $924,000 for 2,200 production hours. Each unit requires 10 minutes of cell process time. During March, 880 DVR players were manufactured in the cell. The materials cost per unit is $77. The following summary transactions took place during March: Materials were purchased for March production. Conversion...
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...
Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $1,099,200 for 2,290 production hours. Each unit requires 20 minutes of cell process time. During March, 810 DVR players were manufactured in the cell. The materials cost per unit is $77. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion...
Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Budgeted Activity Cost Activity Activity Base Casting $142,926 Machine hours Assembly 57,741 Direct labor hours Inspecting 19,912 Number of inspections Setup 24,300 Number of setups dling Materials handling 32,452 Number of loads Corporate records were obtained to estimate the amount of activity to be used by the two products....
Westgate Inc. uses a lean manufacturing strategy to manufacture OVR (digital video recorder) players. The company manufactures OV players through a single product cell. The bu conversion cost for the year is $600,000 for 2,000 production hours. Each unit requires 21 minutes of cell process time. During March, 500 DV players were manufactured in the cel materials cost per unit is $60. The following summary transactions took place during March: 1. Materials were purchased for March production 2. Conversion costs...
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...