Lean Accounting Com-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell. For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell: Conversion Cost Categories Budget $166,300 63,000 22,700 $252,000 Com-Tel plans 2,800 hours of production for the Lion Model cell for the year. The materials cost is $77 per unit. Each assembly requires 20 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory. The following summary events took place in the Lion Model cell during May: a. Electronic parts were purchased to produce 9,500 Lion Model assemblies in May. b. Conversion costs were applied for 9,050 units of production in May. Labor Supplies Utilities Tatal c. During May, 8,870 units were completed and transferred to finished goods. d. Of the 8,870 units completed, 8,600 units were shipped to customers at a price of $350 per unit. If required, round your answers to the nearest cent. Required: 1. Determine the budgeted cell conversion cost per hour. per hour 2. Determine the budgeted cell conversion cost per unit $ per unit 3. Journalize the summary transactions (a) through (d). If an amount box does not require an entry, leave it blank. b. 3. 4. Sale 4. Cost
Lean Accounting Com-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell. For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell: Conversion Cost Categories Budget $166,300 63,000 22,700 $252,000 Com-Tel plans 2,800 hours of production for the Lion Model cell for the year. The materials cost is $77 per unit. Each assembly requires 20 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory. The following summary events took place in the Lion Model cell during May: a. Electronic parts were purchased to produce 9,500 Lion Model assemblies in May. b. Conversion costs were applied for 9,050 units of production in May. Labor Supplies Utilities Tatal c. During May, 8,870 units were completed and transferred to finished goods. d. Of the 8,870 units completed, 8,600 units were shipped to customers at a price of $350 per unit. If required, round your answers to the nearest cent. Required: 1. Determine the budgeted cell conversion cost per hour. per hour 2. Determine the budgeted cell conversion cost per unit $ per unit 3. Journalize the summary transactions (a) through (d). If an amount box does not require an entry, leave it blank. b. 3. 4. Sale 4. Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lean Accounting
Com-Tel Inc. manufactures and assembles two models of smartphones-the Tiger Model and the Lion Model. The process consists of a lean cell for each product. The data that follow concern only the Lion Model lean cell.
For the year, Com-Tel Inc. budgeted these costs for the Lion Model production cell:
Conversion Cost
Categories
Budget
$166,300
63,000
22,700
$252,000
Com-Tel plans 2,800 hours of production for the Lion Model cell for the year. The materials cost is $77 per unit. Each assembly requires 20 minutes of cell assembly time. There was no May 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.
The following summary events took place in the Lion Model cell during May:
a. Electronic parts were purchased to produce 9,500 Lion Model assemblies in May.
b. Conversion costs were applied for 9,050 units of production in May.
Labor
Supplies
Utilities
Tatal
c. During May, 8,870 units were completed and transferred to finished goods.
d. Of the 8,870 units completed, 8,600 units were shipped to customers at a price of $350 per unit.
If required, round your answers to the nearest cent.
Required:
1. Determine the budgeted cell conversion cost per hour.
per hour
2. Determine the budgeted cell conversion cost per unit
$
per unit
3. Journalize the summary transactions (a) through (d). If an amount box does not require an entry, leave it blank.
b.
3.
4. Sale
4. Cost
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