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The budgeted conversion costs for a just-in-time cell are $202,400 for 4,000 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 1,500 units are manufactured in the cell. The estimated materials cost is $55 per unit. What would be the journal entry to record the conversion costs applied to the 1,500 units of production?   a. Finished Goods Inventory18,975 Conversion Costs18,975   b. Raw and In Process Inventory75,900 Conversion Costs75,900   c. Finished Goods Inventory75,900 Conversion Costs75,900   d. Raw and In Process Inventory18,975 Conversion Costs18,975

The budgeted conversion costs for a just-in-time cell are $202,400 for 4,000 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 1,500 units are manufactured in the cell. The estimated materials cost is $55 per unit. What would be the journal entry to record the conversion costs applied to the 1,500 units of production?   a. Finished Goods Inventory18,975 Conversion Costs18,975   b. Raw and In Process Inventory75,900 Conversion Costs75,900   c. Finished Goods Inventory75,900 Conversion Costs75,900   d. Raw and In Process Inventory18,975 Conversion Costs18,975

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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The budgeted conversion costs for a just-in-time cell are $202,400 for 4,000 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 1,500 units are manufactured in the cell. The estimated materials cost is $55 per unit.

What would be the journal entry to record the conversion costs applied to the 1,500 units of production?
 
a. Finished Goods Inventory18,975
Conversion Costs18,975
 
b. Raw and In Process Inventory75,900
Conversion Costs75,900
 
c. Finished Goods Inventory75,900
Conversion Costs75,900
 
d. Raw and In Process Inventory18,975
Conversion Costs18,975
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