Question
Lean accounting Instructions Chart of Accounts Starting Questions Journal Final Questions X Instructions Grand Prix Displays Inc. manufactures and assembles automobile instrument panels for both
Lean accounting
Instructions
Chart of Accounts
Starting Questions
Journal
Final Questions
X
Instructions
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 | $657,000.00 |
3 | Supplies | 41,000.00 |
4 | Utilities | 30,000.00 |
5 | Total | $728,000.00 |
Grand Prix Displays Inc. plans 2,800 hours of production for the Yokohama cell for the year. The materials cost is $130 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 8,400 instrument assemblies in November. |
6 | Conversion costs were applied for the production of 8,200 units in November. | |
24 | 8,100 units were started, completed, and transferred to finished goods in November. | |
29 | 8,020 units were shipped to customers at a price of $410 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? |
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