Grand Prix Displays Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a lean product cell for each customers instrument assembly. The data that follow concern only the Yokohama lean cell.

For the year, Grand Prix Displays Inc. budgeted the following costs for the Yokohama production cell:

1	Conversion Cost Categories	Budget
2	Labor	$585,000.00
3	Supplies	45,000.00
4	Utilities	30,000.00
5	Total	$660,000.00

Grand Prix Displays Inc. plans 2,200 hours of production for the Yokohama cell for the year. The materials cost is $180 per instrument assembly. Each assembly requires 15 minutes of cell assembly time. There was no November 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.

The following summary events took place in the Yokohama cell during November:

Nov.

4

Electronic parts and wiring were purchased to produce 9,000 instrument assemblies in November.

6

Conversion costs were applied for the production of 8,800 units in November.

24

8,650 units were started, completed, and transferred to finished goods in November.

29

8,600 units were shipped to customers at a price of $400 per unit.

Required:
1.	Determine the budgeted cell conversion cost per hour.
2.	Determine the budgeted cell conversion cost per unit.
3.	Journalize the summary transactions for November. 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

Grand Prix Displays Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
150	Raw and In Process Inventory
151	Finished Goods Inventory
180	Land
190	Equipment
191	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customers Refunds Payable
221	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
34	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
511	Conversion Costs
521	Advertising Expense
523	Depreciation Expense-Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

DATE DESCRIPTION JOURNAL POST. REF DEBIT Score: 2/126 CREDIT