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Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $28. The budgeted conversion cost for the year is $76,800 for 1,600 production hours. A unit of Style Omega requires 18 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 790 Style Omega units for June. 2. Conversion costs were applied to 790 Style Omega units of production. 3. 730 units of Style Omega were completed in June. 4. 690 units of Style Omega were sold in June for $80 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

Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $28. The budgeted conversion cost for the year is $76,800 for 1,600 production hours. A unit of Style Omega requires 18 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 790 Style Omega units for June. 2. Conversion costs were applied to 790 Style Omega units of production. 3. 730 units of Style Omega were completed in June. 4. 690 units of Style Omega were sold in June for $80 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lean Mfg: Modern Lighting Inc.

Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $28. The budgeted conversion cost for the year is $76,800 for 1,600 production hours. A unit of Style Omega requires 18 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 790 Style Omega units for June. 2. Conversion costs were applied to 790 Style Omega units of production. 3. 730 units of Style Omega were completed in June. 4. 690 units of Style Omega were sold in June for $80 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. 2$ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. $4 per unit
Transcribed Image Text:Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $28. The budgeted conversion cost for the year is $76,800 for 1,600 production hours. A unit of Style Omega requires 18 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 790 Style Omega units for June. 2. Conversion costs were applied to 790 Style Omega units of production. 3. 730 units of Style Omega were completed in June. 4. 690 units of Style Omega were sold in June for $80 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. 2$ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. $4 per unit
c. Journalize the summary transactions (1)-(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank. Raw and In Process Inventory / 1. Accounts Payable Raw and In Process Inventory 2. Conversion Costs Finished Goods Inventory Raw and In Process Inventory 4. Sale Accounts Receivable Sales Cost of Goods Sold 4. Cost Finished Goods Inventory v 3.
Transcribed Image Text:c. Journalize the summary transactions (1)-(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank. Raw and In Process Inventory / 1. Accounts Payable Raw and In Process Inventory 2. Conversion Costs Finished Goods Inventory Raw and In Process Inventory 4. Sale Accounts Receivable Sales Cost of Goods Sold 4. Cost Finished Goods Inventory v 3.
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