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Right Now Video Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product

Right Now Video 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 $420,000 for 2,000 production hours. Each unit requires 9 minutes of cell process time. During July, 1,100 DVR players are manufactured in the cell. The materials cost per unit is $135. The following summary transactions took place during July:

Jul. 1 Materials are purchased for July production.
3 Conversion costs were applied to production.
15 1,100 DVR players are assembled and placed in finished goods.
25 1,060 DVR players are sold for $335 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 July. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS
Right Now Video 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

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PLEASE ANSWER QUESTION IN FORMAT PROVIDED.

Starting Questions A. Determine the budgeted cell conversion cost per hour, per hour B. Determine the budgeted cell conversion cost per unit. per unit Journal Journalize the summary transactions for July. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL DATE DESCRIPTION POST REF. DEBIT CREDIT

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