13.6 Lean Accounting

Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $18. The budgeted conversion cost for the year is $100,800 for 1,400 production hours. A unit of Style Omega requires 10 minutes of cell production time. The following transactions took place during June:

1. Materials were acquired to assemble 740 Style Omega units for June.
2. Conversion costs were applied to 740 Style Omega units of production.
3. 690 units of Style Omega were completed in June.
4. 640 units of Style Omega were sold in June for $60 per unit.

Question Content Area

a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. $72 per hour

b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. $12 per unit

c. Journalize the summary transactions (1)(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank.

Entries	Account	Debit	Credit
1	Raw and In Process Inventory	?	0
	Accounts Payable	0	?
2	Raw and In Process Inventory	?	0
	Conversion Costs	0	?
3	Finished Goods Inventory	?	0
	Raw and In Process Inventory	0	?
4 Sale	Accounts Receivable	?	0
	Sales	0	?
4 Cost	Cost of Goods Sold	?	0
	Finished Goods Inventory	0	?