Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $1,065,900 for 2,090 production hours. Each unit requires 12 minutes of cell process time. During March, 810 DVR players were manufactured in the cell. The materials cost per unit is $65. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 810 DVR players were assembled and placed in finished goods. 4.770 DVR players were sold for $296 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
Lean Accounting Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $1,065,900 for 2,090 production hours. Each unit requires 12 minutes of cell process time. During March, 810 DVR players were manufactured in the cell. The materials cost per unit is $65. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 810 DVR players were assembled and placed in finished goods. 4.770 DVR players were sold for $296 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:c. Journalize the summary transactions (1)-(4) for March. If an amount box does not require an entry, leave it blank.
1.
Raw and In Process Inventory
Accounts Payable ✔
2.
3.
Raw and In Process Inventory
Conversion Costs
V
Finished Goods Inventory
Raw and In Process Inventory
4. Sale Accounts Receivable
Sales✔
4. Cost Cost of Goods Sold
Finished Goods Inventory
Transcribed Image Text:Lean Accounting
Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players
through a single product cell. The budgeted conversion cost for the year is $1,065,900 for 2,090 production hours. Each unit requires 12 minutes of
cell process time. During March, 810 DVR players were manufactured in the cell. The materials cost per unit is $65. The following summary
transactions took place during March:
1. Materials were purchased for March production.
2. Conversion costs were applied to production.
3. 810 DVR players were assembled and placed in finished goods.
4.770 DVR players were sold for $296 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
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