Question
Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each
Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each customers instrument assembly. The data that follow concern only the eCar lean cell.
For the year, Dashboard Inc. budgeted the following costs for the eCar production cell:
1 | Conversion Cost Categories | Budget |
2 | Labor | $672,000.00 |
3 | Supplies | 41,000.00 |
4 | Utilities | 31,000.00 |
5 | Total | $744,000.00 |
Dashboard Inc. plans 2,400 hours of production for the eCar cell for the year. The materials cost is $140 per instrument assembly. Each assembly requires 15 minutes of cell assembly time. There was no April 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.
The following summary events took place in the eCar cell during April:
a. | Electronic parts and wiring were purchased to produce 9,200 instrument assemblies in April. |
b. | Conversion costs were applied for the production of 9,000 units in April. |
c. | 8,850 units were started, completed, and transferred to finished goods in April. |
d. | 8,800 units were shipped to customers at a price of $470 per unit. |
Required: | |
1. | Determine the budgeted cell conversion cost per hour. |
2. | Determine the budgeted cell conversion cost per unit. If required, round your answer to the nearest whole dollar. |
3. | Journalize the summary transactions (a) through (d). Refer to the Chart of Accounts for exact wording of account titles. |
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? |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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1. Determine the budgeted cell conversion cost per hour.
________________per hour
2. Determine the budgeted cell conversion cost per unit. If required, round your answer to the nearest whole dollar.
________________per unit
3. Journalize the summary transactions for April 30. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
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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 |
5. How does the accounting in a lean environment differ from traditional accounting?
Lean accounting is different from traditional accounting because it is more _______ and uses ________ control. As a result, the number of transactions are______________ . In many lean operations purchased materials are charged to a _____________ . Direct labor is frequently________________ . Often, nonfinancial performance measures, such as _____________ , are used to monitor performance.
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