The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated material cost is $18 per unit. Provide the following journal entries. a) Materials are purchased to produce 4,000 units. (b) Conversion costs are applied to 3,800 units of production. (Please round to nearest cent.) (c) 3,650 units are placed into finished goods

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The Bright Lamp Company has budgeted its conversion cost for the small lamp production as $85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated material cost is $18 per unit. Provide the following journal entries.

a) Materials are purchased to produce 4,000 units. (b) Conversion costs are applied to 3,800 units of production. (Please round to nearest cent.) (c) 3,650 units are placed into finished goods

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