Com-Tel Inc. manufactures and assembles two models of smartphonesthe 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	$78,400
Supplies	29,700
Utilities	10,700
Total	$118,800

Com-Tel plans 1,800 hours of production for the Lion Model cell for the year. The materials cost is $56 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:

1. Electronic parts were purchased to produce 6,100 Lion Model assemblies in May.
2. Conversion costs were applied for 5,800 units of production in May.
3. During May, 5,680 units were completed and transferred to finished goods.
4. Of the 5,680 units completed, 5,510 units were shipped to customers at a price of $264 per unit.

If required, round your answers to the nearest cent.

Required:

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1. Determine the budgeted cell conversion cost per hour.

2. Determine the budgeted cell conversion cost per unit.

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3. Journalize the summary transactions (a) through (d). If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
a.	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryRaw and In Process Inventory
	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryAccounts Payable
b.	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryRaw and In Process Inventory
	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryConversion Costs
3.	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryFinished Goods Inventory
	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryRaw and In Process Inventory
4. Sale	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesAccounts Receivable
	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesSales
4. Cost	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesCost of Goods Sold
	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesFinished Goods Inventory

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4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory. Raw and In Process Inventory: $______ Finished Goods Inventory: $________