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	$596,000.00
3	Supplies	42,000.00
4	Utilities	29,000.00
5	Total	$667,000.00

Grand Prix Displays Inc. plans 2,300 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 8,800 instrument assemblies in November.
	6	Conversion costs were applied for the production of 8,600 units in November.
	24	8,500 units were started, completed, and transferred to finished goods in November.
	29	8,450 units were shipped to customers at a price of $430 per unit.

	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?

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

3. Journalize the summary transactions for November. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10

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 (SIMPLIFIED/COMPLEX) and uses (MINIMAL/MAXIMUM) control.