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 $729,300 for 1,870 production hours. Each unit requires 20 minutes of cell process time. During March, 950 DVR players were manufactured in the cell. The materials cost per unit is $62. The following summary transactions took place during March:
- Materials were purchased for March production.
- Conversion costs were applied to production.
- 950 DVR players were assembled and placed in finished goods.
- 900 DVR players were sold for $340 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 | |||
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