Question
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
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 $924,000 for 2,200 production hours. Each unit requires 10 minutes of cell process time. During March, 880 DVR players were manufactured in the cell. The materials cost per unit is $77. The following summary transactions took place during March:
- Materials were purchased for March production.
- Conversion costs were applied to production.
- 880 DVR players were assembled and placed in finished goods.
- 840 DVR players were sold for $260 per unit.
a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. $ per hour
b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. $ per unit
c. Journalize the summary transactions (1)(4) for March.
1. | |||
2. | |||
3. | |||
4. Sale | |||
4. Cost | |||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started