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 $142,600 Supplies 54,000 Utilities 19,400 Total $216,000 Com-Tel plans 2,400 hours of production for the Lion Model cell for the year. The materials cost is $77 per unit. Each assembly requires 24 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: 3. Electronic parts were purchased to produce 8,150 Lion Model assemblies in May. b. Conversion costs were applied for 7,750 units of production in May. c. 7,600 unim were completed and transferred to nished goods in May. d. 7,370 unim were shipped to customers at a price of $360 per unit. If required, round your answers to the nearest cent. Required: 1. Determine the budgeted cell conversion cost per hour. $- VI per hour ComTel Inc. manufactures and assembles two models of smartphonesthe 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 $142,600 Supplies 54,000 Utilities 19,400 Total $216,000 ComTel plans 2,400 hours of production for the Lion Model cell for the year. The materials cost is $77 per unit. Each assembly requires 24 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: a. Electronic parts were purchased to produce 8,150 Lion Model assemblies in May. b. Conversion costs were applied for 7,750 units of production in May. c. 7,600 unim were completed and transferred to nished goods in May. CI. 7,370 units were shipped to customers at a price of $360 per unit. If required, round your answers to the nearest cent. Required: 1. Determine the budgeted cell conversion cost per hour. $- 2. Determine the budgeted cell conversion cost per unit. 55 36 V/ per unit 3. Journalize the summary transactions (a) through (d). a. Raw and In Process Inventory J 527,550 J Accounts Payable J J b. Raw and In Process Inventory J 597,500 X Conversion Costs J 597,500 X c. Finished Goods Inventory J 1,235,503 X Raw and In Process Inventory J 1,235,608 X > d. Sale Accounts Receivable J J Sales J J d. Cost Cost of Goods Sold J X Finished Goods Inventory J 1,193,21445 X 4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory. Raw and In Process Inventory $ 89,419 X Finished Goods Inventory $- X 5. Lean accounting is different from traditional accounting because it is more simplified J and uses minimal J control. As a result, > the number of transactions are reduced J . In many lean operations, purchased materials are charged to a \"raw and in process inventory" account J . Direct labor is frequently included as a conversion cost of the cell J . Often, nonnancial performance measures, such as lead time or quality measures J , are used to monitor performance
