Lean accounting obj. 2 Ever-Brite Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style BB-01 has
Question:
Lean accounting obj. 2 Ever-Brite Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods.
Style BB-01 has a materials cost per unit of $45. The budgeted conversion cost for the year is $193,200 for 2,100 production hours. A unit of Style BB-01 requires 15 minutes of cell production time. The following transactions took place during December:
1. Materials were acquired to assemble 700 Style BB-01 units for December.
2. Conversion costs were applied to 700 Style BB-01 units of production.
3. 685 units of Style BB-01 were completed in December.
4. 670 units of Style BB-01 were sold in December for $128 per unit.
a. Determine the budgeted cell conversion cost per hour.
b. Determine the budgeted cell conversion cost per unit.
c. Journalize the summary transactions (1)–(4) for December.
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