Com-Tel Inc. manufactures and assembles two models of smart phonesthe Tiger Model and the Lion Model. Theprocessconsists of a just-in-time cell for each product. The data that follow concern only the Lion Model just-in-time cell.

For the year, Com-Tel Inc. budgeted the following costs for the Lion Model production cell:

Com-Tel plans 2,100 hours of production for the Lion Model cell for the year. The materials cost is $185 per unit. Each assembly requires 12 minutes of cell assembly time. There was no May 1 inventory for eitherRaw and In Process Inventoryor Finished Goods Inventory.

The following summary events took place in the Lion Model cell during May:

1. Electronic parts were purchased to produce 10,700 Lion Model assemblies in May.
2. Conversion costs were applied for 10,500 units of production in May.
3. 10,200 units were completed and transferred to finished goods in May.
4. 10,000 units were shipped to customers at a price of $500 per unit.

Required:

Hint(s)

1. Determine the budgeted cellconversion costper hour. $per hour

2. Determine the budgeted cell conversion cost per unit. $per unit

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1. Budgeted conversion costs production hours = Conversion cost per hour

2. (Cell process time 60 minutes) x Conversion rate from Req. (1) = Conversion cost per unit

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Hint(s)

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3. Journalize the summary transactions (a) through (d).