Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $858,000 of conversion costs and 11,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $360 of raw materials. During a recent quarter, the company produced 710 mowers and sold 690 mowers. Each mower is sold for $1,110. 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 690 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 690 mowers on credit, and (d) cost of goods sold and finished goods inventory. View transaction list Journal entry worksheet 1 2 3 4 7

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $858,000 of conversion costs and 11,000
production hours for this year. The manufacturing of each mower requires 5 production hours and $360 of raw materials. During a
recent quarter, the company produced 710 mowers and sold 690 mowers. Each mower is sold for $1,110.
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 690 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 690
mowers on credit, and (d) cost of goods sold and finished goods inventory.
View transaction list
Journal entry worksheet
1
2
3
4
7
Transcribed Image Text:Robo-Lawn is a lean manufacturer of robotic lawn mowers. The company budgets $858,000 of conversion costs and 11,000 production hours for this year. The manufacturing of each mower requires 5 production hours and $360 of raw materials. During a recent quarter, the company produced 710 mowers and sold 690 mowers. Each mower is sold for $1,110. 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 690 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 690 mowers on credit, and (d) cost of goods sold and finished goods inventory. View transaction list Journal entry worksheet 1 2 3 4 7
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