Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

5th edition

1259914895, 978-1259914898

More Books

Students also viewed these Accounting questions

Question

1. Focus on your readers' goals and values.

Answered: 1 week ago