w2lOnlinex e The Annual Budgeted Co ×YG Lean Accounting The amx. A ow.com/lirn/t
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w2lOnlinex e The Annual Budgeted Co ×YG Lean Accounting The amx. A ow.com/lirn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAss.; Lean Accounting The annual budgeted conversion costs for a lean cell are $180,000 for 2,000 production hours. Each u produced by the cell requires 18 minutes of cel process time. During the month, 550 units are manufactured in the cell. The estimated materials costs are $32 per unit. Provide the following journal entries: a. Materials are purchased to produce 600 units. b. Conversion costs are applied to 550 units of production. c. 500 units are completed and placed into finished goods. a RawMateriais -180,000 X Converslon Costs X b. c. a. Increase Raw and In Process Inventory (aebit) and increase Accounts Payable (credit) for perExplanation / Answer
LEAN ACCOUNTING $ $
(a) RAW MATERIALS A/C DR 19,200
TO CASH A/C (600*$32) 19,200
(BEING MATERIALS PURCHASED FROM CASH )
(b) CONVERSION COSTS A/C DR 14,850
TO ACCRUED WAGES A/C [(550*18MIN)/60MIN]*$90 14,850
(BEING CONVERSION COSTS APPLIED TO PRODUCTION)
(c) FINISHED GOODS A/C DR 29,500
TO RAW MATERIALS A/C (500*$32) 16,000
TO CONVERSION COSTS A/C [(500*18MIN)/60MIN]*$90 13,500
(BEING 500 COMPLETED AND PROCESSED INTO FINISHED GOODS)
COST OF QUALITY REPORT
QUALITY COST CLASSIFICATION QUALITY COST % OF TOTAL QUALITY COST % OF TOTAL SALES PREVENTION 265,000 53% 6.70% APPRAISAL $175,000 35% 4.30% INTERNAL FAILURE $20,000 4% 0.50% EXTERNAL FAILURE $40,000 8% 1% TOTAL $500,000 100% 12.50%Related Questions
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