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Ever-Brite Lighting Inc. manufactures lighting fixtures, using lean manufacturing A manufacturing enterprise that uses lean principles. methods. Style BB-01 has a materials cost per unit
Ever-Brite Lighting Inc. manufactures lighting fixtures, using lean manufacturing
A manufacturing enterprise that uses lean principles.
methods. Style BB-01 has a materials cost per unit of $145. The budgeted conversion cost
The combination of direct labor and factory overhead costs.
for the year is $205,000 for 2,050 production hours. A unit of Style BB-01 requires 15 minutes of cell production time. The following transactions took place during December:
Dec. | 1 | Materials were acquired to assemble 900 Style BB-01 units for December. |
3 | Conversion costs were applied to 900 Style BB-01 units of production. | |
14 | 885 units of Style BB-01 were completed in December. | |
28 | 860 units of Style BB-01 were sold in December for $128 per unit. |
Required: | |
A. | Determine the budgeted cell conversion cost per hour. |
B. | Determine the budgeted cell conversion cost per unit. |
C. | Journalize the summary transactions for December. Refer to the Chart of Accounts for exact wording of account titles. |
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