Lean Accounting

Westgate Inc. uses a lean manufacturing strategy to manufacture DVR $($digital video recorder$)$ players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $$1,147,500$ for $2,250$ production hours. Each unit requires $10$ minutes of cell process time. During March, $970$ DVR players were manufactured in the cell. The materials cost per unit is $$58.$ The following summary transactions took place during March:

Materials were purchased for March production.

Conversion costs were applied to production.

$970$ DVR players were assembled and placed in finished goods.

$920$ DVR players were sold for $$253$ per unit.

Question Content Area

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

fill in the blank $1$ of $1$$

$510$

per hour

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

fill in the blank $1$ of $1$$

$85$

per unit

Feedback Area

Feedback

a$.$ Budgeted conversion cost $-$: Planned hours of production $=$ Cell Conversion cost per hour

b$.($Cell process time $-$: $60$ minutes$)$ x Conversion rate from Req. $($a$)=$ Cell Conversion cost per unit

Question Content Area

c$.$ Journalize the summary transactions $(1)(4)$ for March. If an amount box does not require an entry, leave it blank.

TransactionAccountDebitCredit

$1.$

Raw and In Process Inventory

$0$

Accounts Payable

$0$

$2.$

Raw and In Process Inventory

$0$

Conversion Costs

$0$

$3.$

Finished Goods Inventory

$0$

Raw and In Process Inventory

$0$

$4.$ Sale

Accounts Receivable

$0$

Sales

$0$

$4.$ Cost

Cost of Goods Sold

$0$

Finished Goods Inventory