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 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

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 for June 30. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10

	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