Question
The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours. Each unit produced by the
The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated material cost is $18 per unit.
Required: Please Journal the following amounts using the following word bank. In your computations, round per unit cost to two decimal places and use rounded amount in subsequent calculations. If required, round your final answers to the nearest dollar.
WORD BANK
Accounts Payable
Conversion Costs
Raw and In Process Inventory
Sales
Supplies
Accounts Payable
Accounts Receivable
Cash
Cost of Goods Sold
Sales
1. Materials are purchased to produce 4,000 units.
a. _________$
b. _________$
2. Conversion costs are applied to 3,800 units of production.
a. __________$
b.__________$
c. 3,650 units are placed into finished goods.
a. ___________$
b.____________$
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