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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 $873,600 for 1,820 production hours. Each unit requires 20 minutes of cell process time. During March, 890 DVR players were manufactured in the cell. The materials cost per unit $69. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 890 DVR players were assembled and placed in finished goods. 4. 850 DVR players were sold for $405 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 $873,600 for 1,820 production hours. Each unit requires 20 minutes of cell process time. During March, 890 DVR players were manufactured in the cell. The materials cost per unit $69. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 890 DVR players were assembled and placed in finished goods. 4. 850 DVR players were sold for $405 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

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: Westgate Inc

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 $873,600 for 1,820 production hours. Each unit requires 20 minutes of cell process time. During March, 890 DVR players were manufactured in the cell. The materials cost per unit is $69. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 890 DVR players were assembled and placed in finished goods. 4. 850 DVR players were sold for $405 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
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 $873,600 for 1,820 production hours. Each unit requires 20 minutes of cell process time. During March, 890 DVR players were manufactured in the cell. The materials cost per unit is $69. The following summary transactions took place during March: 1. Materials were purchased for March production. 2. Conversion costs were applied to production. 3. 890 DVR players were assembled and placed in finished goods. 4. 850 DVR players were sold for $405 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
c. Journalize the summary transactions (1)-(4) for March. 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 v Sales Cost of Goods Sold 4. Cost Finished Goods Inventory 00 00 1I 1I 00 3.
Transcribed Image Text:c. Journalize the summary transactions (1)-(4) for March. 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 v Sales Cost of Goods Sold 4. Cost Finished Goods Inventory 00 00 1I 1I 00 3.
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