Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing me

Question

Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $135. The budgeted conversion cost for the year is $180,600 for 2,150 production hours. A unit of Style Omega requires 15 minutes of cell production time. The following transactions took place during June: 1. 2. 3. 4. Materials were acquired to assemble 600 Style Omega units for June. Conversion costs were applied to 600 Style Omega units of production. 585 units of Style Omega were completed in June. 575 units of Style Omega were sold in June for $186 per unit Required: a. Determine the budgeted cell conversion cost per hour. b. Determine the budgeted cell conversion cost per unit. c. Journalize the summary transactions (1)-(4) for June. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Modern Lighting Inc. General Ledger

Explanation / Answer

ans a Budgeted cell conversion cost per hour 180600/2150 $84 per hour ans b Conversion cost per unit $21 per unit 84*15/60 ans c Transation Accounts title Dr Cr 1 Work In process Inventory 81000 Raw material (600*135) 81000 2 Work In process Inventory 12285 Conversion cost 12285 (585*21) 3 Finished Goods Inventory 91260 Work In process Inventory 91260 585*(135+21) 4 Accounts receivable (575*18) 106950 Sales 106950 Cost of good sold 89700 Finished Goods Inventory 89700 575*(135+21)

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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