Just-in-Time Accounting Optic Matrix Inc. manufactures and assembles automobile

Question

Just-in-Time Accounting Optic Matrix Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a just-in-time product cell for each customer's instrument assembly. The data that follow concern only the Yokohama just-in-time cel For the year, Optic Matrix Inc. budgeted the following costs for the Yokohama production cel Conversion Cost Categories Labor Supplies Utilities Budget $118,800 45,000 16,200 $180,000 Total Optic Matrix Inc. plans 3,000 hours of production for the Yokohama cell for the year. The materials cost is $51 per instrument assembly. Each assembly requires 24 minutes of cell assembly time. There was no November 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory The following summary events took place in the Yokohama cell during November: a. Electronic parts and wiring were purchased to produce 10,200 instrument assemblies in November. b. Conversion costs were applied for the production of 9,700 units in November c. 9,510 units were started, completed, and transferred to finished goods in November d. 9,220 units were shipped to customers at a price of $240 per unit If required, round to the nearest cent Required: Hint(s 1. Determine the budgeted cell conversion cost per hour per hour 2. Determine the budgeted cell conversion cost per unit per unit

Explanation / Answer

Ans 1 Budgeted cell conversion cost per hour $180000/30000 hours $6 per hour Ans 2 Budgeted cell conversion cost per unit Each unit take 24 minutes of cell assembly time 3000 hours*60/24 7500 units are produced 180000/7500 $24 per unit a Raw and in process Inventory (10200*51) $520200 Accoumts Payable 520200 (10200 instrument assemblies piurchased @ $51 n account) b Raw and In processInventory (9700*24) 232800 Conversion cost 232800 (Being applied on 9700 units) c Finished Goods Inventory 9510*(51+24) 713250 Raw and in Process Inventory 713250 (Being 9510 units transferred from WIP to Finished Goods) d Accounts Receivable 9220*240 2212800 Sales 2212800 (Being sales made on account) Cost of Good Sold 9220*(51+24) 691500 Finished Goods Inventory 691500 (Being finished goods transferred to COGS for sales of units) Ans 4 Raw and In process Inventory 520200+232800-713250 39750 Finished Goods 713250-691500 21750 Ans 5 Because it is more simple and uses minimal control

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.