Lean Accounting

Com-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell.

For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell:

Conversion Cost Categories		Budget
Labor		$114,000
Supplies		43,200
Utilities		15,600
Total		$172,800

Com-Tel plans 1,800 hours of production for the Lion Model cell for the year. The materials cost is $82 per unit. Each assembly requires 15 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.

The following summary events took place in the Lion Model cell during May:

1. Electronic parts were purchased to produce 6,100 Lion Model assemblies in May.
2. Conversion costs were applied for 5,800 units of production in May.
3. 5,680 units were completed and transferred to finished goods in May.
4. 5,510 units were shipped to customers at a price of $384 per unit.

If required, round your answers to the nearest cent.

Required:

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

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

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

a.	Raw and In Process Inventory
	Accounts Payable
b.	Raw and In Process Inventory
	Conversion Costs
c.	Finished Goods Inventory
	Raw and In Process Inventory
d. Sale	Accounts Receivable
	Sales
d. Cost	Cost of Goods Sold
	Finished Goods Inventory

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

Raw and In Process Inventory	$
Finished Goods Inventory	$