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Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $800,000 of conversion costs and 10,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $250 of raw materials. During a recent quarter, the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000. Required: 1. Compute the conversion cost rate per mower. 2. Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. View transaction list View journal entry worksheet × No Transaction General Journal Debit Credit 1 a. Work in process inventory 150,000 Accounts payable 150,000 2 b. 3 C. Work in process inventory Conversion costs Accounts receivable Sales 4 d. Finished goods inventory Cost of goods sold < Required 1 Required 2 > 240,000 240,000 580,000 580,000 191,400 377,000

Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $800,000 of conversion costs and 10,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $250 of raw materials. During a recent quarter, the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000. Required: 1. Compute the conversion cost rate per mower. 2. Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. View transaction list View journal entry worksheet × No Transaction General Journal Debit Credit 1 a. Work in process inventory 150,000 Accounts payable 150,000 2 b. 3 C. Work in process inventory Conversion costs Accounts receivable Sales 4 d. Finished goods inventory Cost of goods sold < Required 1 Required 2 > 240,000 240,000 580,000 580,000 191,400 377,000

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
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Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $800,000 of conversion costs and 10,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $250 of raw materials. During a recent quarter, the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000. Required: 1. Compute the conversion cost rate per mower. 2. Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. View transaction list View journal entry worksheet ×
Transcribed Image Text:Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $800,000 of conversion costs and 10,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $250 of raw materials. During a recent quarter, the company produced 600 mowers and sold 580 mowers. Each mower is sold for $1,000. Required: 1. Compute the conversion cost rate per mower. 2. Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record (a) purchase of raw materials on credit, (b) applied conversion costs to production, (c) sale of 580 mowers on credit, and (d) cost of goods sold and finished goods inventory. View transaction list View journal entry worksheet ×
No Transaction General Journal Debit Credit 1 a. Work in process inventory 150,000 Accounts payable 150,000 2 b. 3 C. Work in process inventory Conversion costs Accounts receivable Sales 4 d. Finished goods inventory Cost of goods sold < Required 1 Required 2 > 240,000 240,000 580,000 580,000 191,400 377,000
Transcribed Image Text:No Transaction General Journal Debit Credit 1 a. Work in process inventory 150,000 Accounts payable 150,000 2 b. 3 C. Work in process inventory Conversion costs Accounts receivable Sales 4 d. Finished goods inventory Cost of goods sold < Required 1 Required 2 > 240,000 240,000 580,000 580,000 191,400 377,000
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