Question
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $125. The budgeted conversion cost for
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $125. The budgeted conversion cost for the year is $171,600 for 1,950 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 650 Style Omega units for June. |
2. | Conversion costs were applied to 650 Style Omega units of production. |
3. | 635 units of Style Omega were completed in June. |
4. | 610 units of Style Omega were sold in June for $177 per unit. |
Required: | |
a. | Determine the budgeted cell conversion cost per hour. |
b. | Determine the budgeted cell conversion cost per unit. |
c. | Journalize the summary transactions (1)-(4) for June. Refer to the Chart of Accounts for exact wording of account titles. |
CHART OF ACCOUNTSModern Lighting Inc.General Ledger
ASSETS | |
110 | Cash |
120 | Accounts Receivable |
125 | Notes Receivable |
140 | Office Supplies |
141 | Store Supplies |
142 | Prepaid Insurance |
150 | Raw and In Process Inventory |
151 | Finished Goods Inventory |
180 | Land |
190 | Equipment |
191 | Accumulated Depreciation-Equipment |
LIABILITIES | |
210 | Accounts Payable |
216 | Salaries Payable |
218 | Sales Tax Payable |
219 | Customers Refunds Payable |
221 | Notes Payable |
EQUITY | |
31 | Common Stock |
32 | Retained Earnings |
33 | Dividends |
34 | Income Summary |
REVENUE | |
410 | Sales |
EXPENSES | |
510 | Cost of Goods Sold |
511 | Conversion Costs |
521 | Advertising Expense |
523 | Depreciation Expense-Equipment |
526 | Salaries Expense |
531 | Rent Expense |
533 | Insurance Expense |
534 | Store Supplies Expense |
535 | Office Supplies Expense |
536 | Credit Card Expense |
539 | Miscellaneous Expense |
710 | Interest Expense |
a. Determine the budgeted cell conversion cost per hour.
per hour
b. Determine the budgeted cell conversion cost per unit.
per unit
. Journalize the summary transactions (1)-(4) for June 30. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
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