Modern Lighting Inc manufactures lighting fixtures, using lean manufacturing methods Style Omega has a materials cost per unit of $120 The budgeted conversion cost for the year is $192,000 for 2,000 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 800 Style Omega units for June 2 Conversion costs were applied to 800 Style Omega units of production 3 785 units of Style Omega were completed in June 4 770 units of Style Omega were sold in June for $174 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 ACCOUNTS Modern 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 c Journalize the summary transactions (1) (4) for June 30 Refer to the Chart of Accounts for exact wording of account titles Question not attempted PAGE 10 JOURNAL Score 0 126 DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10

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Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $120. The budgeted conversion cost for

Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $120. The budgeted conversion cost for the year is $192,000 for 2,000 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 800 Style Omega units for June.
2.	Conversion costs were applied to 800 Style Omega units of production.
3.	785 units of Style Omega were completed in June.
4.	770 units of Style Omega were sold in June for $174 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 ACCOUNTS

Modern 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