Just-in-Time Journal Entries Motion Media Inc. uses a just-in-time strategy to m

Question

Just-in-Time Journal Entries

Motion Media Inc. uses a just-in-time strategy to manufacture DVD players. The company manufactures DVD players through a single product cell. The budgeted conversion cost for the year is $764,400 for 1,960 production hours. Each unit requires 12 minutes of cell process time. During May, 820 DVD players are manufactured in the cell. The materials cost per unit is $74.

The following summary transactions took place during May:

Materials are purchased for May production.

Conversion costs were applied to production.

820 DVD players are assembled and placed in finished goods.

780 DVD players are sold for $269 per unit.

a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.
$ per hour

b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.
$ per unit

Explanation / Answer

Motion Media Inc. All Amounts in $ a. Budgeted Cell Conversion Cost per Hour = $ 764,400 / 1,960 = 390 $ per hour b. Budgeted Cell Conversion Cost per unit Material Cost 74 Labor Cost 78 Total Cost per unit 152 $ per unit

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