Grand Prix Displays Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a just-in-time product cell for each customer’s instrument assembly. The data that follow concern only the Yokohama just-in-time cell.
For the year, Grand Prix Displays Inc. budgeted the following costs for the Yokohama production cell:
Conversion Cost Categories Budget
Labor .............. $ 685,000
Supplies ............. 47,000
Utilities .............. 24,000
Total ............... $ 756,000
Grand Prix Displays Inc. plans 2,400 hours of production for the Yokohama cell for the year. The materials cost is $ 100 per instrument assembly. Each assembly requires 20 minutes of cell assembly time. There was no November 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory. The following summary events took place in the Yokohama cell during November:
a. Electronic parts and wiring were purchased to produce 7,300 instrument assemblies in November.
b. Conversion costs were applied for the production of 7,200 units in November.
c. 7,150 units were started, completed, and transferred to finished goods in November.
d. 7,000 units were shipped to customers at a price of $ 400 per unit.

Instructions
1. Determine the budgeted cell conversion cost per hour.
2. Determine the budgeted cell conversion cost per unit.
3. Journalize the summary transactions (a) through (d).
4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory.
5. How does the accounting in a JIT environment differ from traditional accounting?