3.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 $114,000 Supplies 43,200 Utilities 15,600 Total $172,800 Com-Tel plans 2,400 hours of production for the Lion Model cell for the year. The materials cost is $61 per unit. Each assembly requires 20 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: a.Electronic parts were purchased to produce 8,150 Lion Model assemblies in May. b.Conversion costs were applied for 7,750 units of production in May. c.7,600 units were completed and transferred to finished goods in May. d.7,370 units were shipped to customers at a price of $288 per unit. 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 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 4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory. Raw and In Process Inventory $ Finished Goods Inventory $ 5. Lean accounting is different from traditional accounting because it is more simplified and uses minimal control. As a result, the number of transactions are reduced . In many lean operations, purchased materials are charged to a raw and in process inventory account . Direct labor is frequently included as a conversion cost of the cell . Often, nonfinancial performance measures, such as lead time or quality measures , are used to monitor performance. 4. 5. Previous Next