Question
Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The
Westgate 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 $1,071,000 for 2,100 production hours. Each unit requires 10 minutes of cell process time. During March, 990 DVR players were manufactured in the cell. The materials cost per unit is $82. The following summary transactions took place during March:
- Materials were purchased for March production.
- Conversion costs were applied to production.
- 990 DVR players were assembled and placed in finished goods.
- 940 DVR players were sold for $296 per unit.
a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. $fill in the blank 77e91a041fad06b_1 per hour
b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. $fill in the blank 77e91a041fad06b_2 per unit
c. Journalize the summary transactions (1)(4) for March. If an amount box does not require an entry, leave it blank.
| 1. | Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory | - Select - | - Select - |
| Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory | - Select - | - Select - | |
| 2. | Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory | - Select - | - Select - |
| Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory | - Select - | - Select - | |
| 3. | Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory | - Select - | - Select - |
| Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory | - Select - | - Select - | |
| 4. Sale | Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales | - Select - | - Select - |
| Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales | - Select - | - Select - | |
| 4. Cost | Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales | - Select - | - Select - |
| Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales | - Select - | - Select - |
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Financial and Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285866307
