Lean Accounting

Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $29. The budgeted conversion cost for the year is $194,400 for 2,700 production hours. A unit of Style Omega requires 15 minutes of cell production time. The following transactions took place during June:

1. Materials were acquired to assemble 770 Style Omega units for June.
2. Conversion costs were applied to 770 Style Omega units of production.
3. 720 units of Style Omega were completed in June.
4. 670 units of Style Omega were sold in June for $90 per unit.

a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. ____________per hour

b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. ___________ per unit

c. Journalize the summary transactions (1)(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank.

1.	Raw and In Process Inventory
	Accounts Payable
2.	Raw and In Process Inventory
	Conversion Costs
3.	Finished Goods Inventory
	Raw and In Process Inventory
4. Sale	Accounts Receivable
	Sales
4. Cost	Cost of Goods Sold
	Finished Goods Inventory