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 $719,400 for 2,180 production hours. Each unit requires 10 minutes of cell process time. During March, 830 DVR players were manufactured in the cell. The materials cost per unit is $73. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 830 DVR players were assembled and placed in finished goods. 790 DVR players were sold for $227 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. $fill in the blank 306481020facfbc_1 per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. $fill in the blank 306481020facfbc_2 per unit c. Journalize the summary transactions (1)–(4) for March. If an amount box does not require an entry, leave it blank. 1. fill in the blank 22124d0d0fc9046_2 fill in the blank 22124d0d0fc9046_3 fill in the blank 22124d0d0fc9046_5 fill in the blank 22124d0d0fc9046_6 2. fill in the blank 22124d0d0fc9046_8 fill in the blank 22124d0d0fc9046_9 fill in the blank 22124d0d0fc9046_11 fill in the blank 22124d0d0fc9046_12 3. fill in the blank 22124d0d0fc9046_14 fill in the blank 22124d0d0fc9046_15 fill in the blank 22124d0d0fc9046_17 fill in the blank 22124d0d0fc9046_18 4. Sale fill in the blank 22124d0d0fc9046_20 fill in the blank 22124d0d0fc9046_21 fill in the blank 22124d0d0fc9046_23 fill in the blank 22124d0d0fc9046_24 4. Cost fill in the blank 22124d0d0fc9046_26 fill in the blank 22124d0d0fc9046_27 fill in the blank 22124d0d0fc9046_29 fill in the blank 22124d0d0fc9046_30
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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 $719,400 for 2,180 production hours. Each unit requires 10 minutes of cell process time. During March, 830 DVR players were manufactured in the cell. The materials cost per unit is $73. The following summary transactions took place during March:
- Materials were purchased for March production.
- Conversion costs were applied to production.
- 830 DVR players were assembled and placed in finished goods.
- 790 DVR players were sold for $227 per unit.
a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.
$fill in the blank 306481020facfbc_1 per hour
b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.
$fill in the blank 306481020facfbc_2 per unit
c. Journalize the summary transactions (1)–(4) for March. If an amount box does not require an entry, leave it blank.
| 1. | fill in the blank 22124d0d0fc9046_2 | fill in the blank 22124d0d0fc9046_3 | |
| fill in the blank 22124d0d0fc9046_5 | fill in the blank 22124d0d0fc9046_6 | ||
| 2. | fill in the blank 22124d0d0fc9046_8 | fill in the blank 22124d0d0fc9046_9 | |
| fill in the blank 22124d0d0fc9046_11 | fill in the blank 22124d0d0fc9046_12 | ||
| 3. | fill in the blank 22124d0d0fc9046_14 | fill in the blank 22124d0d0fc9046_15 | |
| fill in the blank 22124d0d0fc9046_17 | fill in the blank 22124d0d0fc9046_18 | ||
| 4. Sale | fill in the blank 22124d0d0fc9046_20 | fill in the blank 22124d0d0fc9046_21 | |
| fill in the blank 22124d0d0fc9046_23 | fill in the blank 22124d0d0fc9046_24 | ||
| 4. Cost | fill in the blank 22124d0d0fc9046_26 | fill in the blank 22124d0d0fc9046_27 | |
| fill in the blank 22124d0d0fc9046_29 | fill in the blank 22124d0d0fc9046_30 |
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