Just-in-Time Accounting

Optic Matrix Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a just-in-time product cell for each customer's instrument assembly. The data that follow concern only the Yokohama just-in-time cell.

For the year, Optic Matrix Inc. budgeted the following costs for the Yokohama production cell:

Conversion Cost Categories		Budget
Labor		$130,700
Supplies		49,500
Utilities		17,800
Total		$198,000

Optic Matrix Inc. plans 3,000 hours of production for the Yokohama cell for the year. The materials cost is $56 per instrument assembly. Each assembly requires 18 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:

Electronic parts and wiring were purchased to produce 10,200 instrument assemblies in November.

Conversion costs were applied for the production of 9,700 units in November.

9,510 units were started, completed, and transferred to finished goods in November.

9,220 units were shipped to customers at a price of $264 per unit.

If required, round to the nearest cent.

1. Determine the budgeted cell conversion cost per hour. $ per hour

2. Determine the budgeted cell conversion cost per unit. $ per unit

3. Journalize the summary transactions (a) through (d).

4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory.

Raw and In Process Inventory	$
Finished Goods Inventory	$