Lean Accounting Assignment | Top Universities
Lean Accounting
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $34. The budgeted conversion cost for the year is $172,500 for 2,500 production hours. A unit of Style Omega requires 15 minutes of cell production time. The following transactions took place during June:
- Materials were acquired to assemble 870 Style Omega units for June.
- Conversion costs were applied to 870 Style Omega units of production.
- 810 units of Style Omega were completed in June.
- 760 units of Style Omega were sold in June for $100 per unit.
a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent.
$ per hour
b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent.
$ per unit
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a. Budgeted conversion cost ÷ production hours = Conversion cost per hour
b. (Cell process time ÷ 60 minutes) x Conversion rate from Req. (a) = Conversion cost per unit
Learning Objective 2.
c. Journalize the summary transactions (1)–(4) for June. If required, round your answers to one decimal place.
| 1. | Accounts Payable | ||
| Accounts Receivable | |||
| 2. | |||
| 3. | |||
| 4. Sale | |||
| 4. Cost | |||
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