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 customer's 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 Conversion Cost Categories Budget 889,000.00 2 Labor Supplies 1,000.00 4 Utilities 30,000.00 960,000.00 5 Total Grand Prix Displays Inc. plans 3,000 hours of production for the Yokohama cell for the year. The materials cost is $200 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 8,200 instrument assemblies in November 6 Conversion costs were applied for the production of 8,000 units in November. 24 7,850 units were started, completed, and transferred to finished goods in November. 7,780 units were shipped to customers at a price of $420 per unit. 29 Required: 1. Determine the budgeted cell conversion cost per hour 2. Determine the budgeted cell conversion cost per unit. Round your answer to the nearest whole dollar. 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 REVENUE 110 Cash 410 Sales 120 Accounts Receivable 125 Notes Receivable EXPENSES 140 Office Supplies 510 Cost of Goods Sold 141 Store Supplies 511 Conversion Costs 142 Prepaid Insurance 521 Advertising Expense 150 Raw and In Process Inventory 523 Depreciation Expense-Equipment 151 Finished Goods Inventory 526 Salaries Expense 180 Land 531 Rent Expense 190 Equipment 533 Insurance Expense 191 Accumulated Depreciation-Equipment 534 Store Supplies Expense 535 Office Supplies Expense LIABILITIES 536 Credit Card Expense 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 218 Sales Tax Payable 219 Customers Refunds Payable 221 Notes Payable EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends 34 Income Summary Starting Question:s 1. Determine the budgeted cell conversion cost per hour. per hour 2. Determine the budgeted cell conversion cost per unit. Round your answer to the nearest whole dollar. per unit Journal 3 Journalize the summary transactions for November. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 OURNAL DATE DESCRIPTION CREDIT DEBIT REF. 10
