Lean Accounting

Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each customers instrument assembly. The data that follow concern only the eCar lean cell.

For the year, Dashboard Inc. budgeted the following costs for the eCar production cell:

Conversion Cost Categories		Budget
Labor		$800,000
Supplies		275,000
Utilities		325,000
Total		$1,400,000

Dashboard Inc. plans 2,000 hours of production for the eCar cell for the year. The materials cost is $240 per instrument assembly. Each assembly requires 24 minutes of cell assembly time. There was no April 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.

The following summary events took place in the eCar cell during April:

a. Electronic parts and wiring were purchased to produce 450 instrument assemblies in April. b. Conversion costs were applied for the production of 400 units in April. c. 380 units were started, completed, and transferred to finished goods in April. d. 350 units were shipped to customers at a price of $800 per unit.

Required:

1. Determine the budgeted cell conversion cost per hour. $fill in the blank e29f27fd406cf83_1 per hour

2. Determine the budgeted cell conversion cost per unit. $fill in the blank e29f27fd406cf83_2 per unit

3. Journalize the summary transactions (a) through (d). If an amount box does not require an entry, leave it blank.

a.		fill in the blank f36e1efc906a063_2	fill in the blank f36e1efc906a063_3
		fill in the blank f36e1efc906a063_5	fill in the blank f36e1efc906a063_6
b.		fill in the blank f36e1efc906a063_8	fill in the blank f36e1efc906a063_9
		fill in the blank f36e1efc906a063_11	fill in the blank f36e1efc906a063_12
c.		fill in the blank f36e1efc906a063_14	fill in the blank f36e1efc906a063_15
		fill in the blank f36e1efc906a063_17	fill in the blank f36e1efc906a063_18
d. Sale		fill in the blank f36e1efc906a063_20	fill in the blank f36e1efc906a063_21
		fill in the blank f36e1efc906a063_23	fill in the blank f36e1efc906a063_24
d. Cost		fill in the blank f36e1efc906a063_26	fill in the blank f36e1efc906a063_27
		fill in the blank f36e1efc906a063_29	fill in the blank f36e1efc906a063_30

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

Raw and In Process Inventory:	$fill in the blank 201a0c053fe3f96_1
Finished Goods Inventory:	$fill in the blank 201a0c053fe3f96_2

5. Lean accounting is different from traditional accounting because it is more ____ and uses ____ control. As a result, the number of transactions are ____ . In many lean operations, purchased materials are charged to a ____ . Direct labor is ____ . Often, nonfinancial performance measures, such as ____ , are used to monitor performance.