In: Accounting
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 | $152,100 | ||
Supplies | 57,600 | ||
Utilities | 20,700 | ||
Total | $230,400 |
Com-Tel plans 3,200 hours of production for the Lion Model cell for the year. The materials cost is $61 per unit. Each assembly requires 15 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.
The following summary events took place in the Lion Model cell during May:
If required, round your answers to the nearest cent.
Required:
1. Determine the budgeted cell conversion cost
per hour.
$ per hour
2. Determine the budgeted cell conversion cost
per unit.
$ per unit
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3. Journalize the summary transactions (a) through (d).
a. | Raw and In Process Inventory | ||
Accounts Payable | |||
b. | Raw and In Process Inventory | ||
Conversion Costs | |||
c. | Finished Goods Inventory | ||
Raw and In Process Inventory | |||
d. Sale | Accounts Receivable | ||
Sales | |||
d. Cost | Cost of Goods Sold | ||
Finished Goods Inventory |
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4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory.
Raw and In Process Inventory | $ |
Finished Goods Inventory | $ |