Lean accounting obj. 2 Formula One Displays Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a lean product cell for each customer’s instrument assembly. The data that follow concern only the Yokohama lean cell.

For the year, Grand Prix Displays Inc. budgeted the following costs for the Yokohama production cell:
Conversion Cost Categories Budget Labor $585,000 Supplies 45,000 Utilities 30,000 Total $660,000 Grand Prix Displays Inc. plans 2,200 hours of production for the Yokohama cell for the year. The materials cost is $180 per instrument assembly. Each assembly requires 15 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 9,000 instrument assemblies in November.

b. Conversion costs were applied for the production of 8,800 units in November.

c. 8,650 units were started, completed, and transferred to finished goods in November.

d. 8,600 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 lean environment differ from traditional accounting?