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 $777,600 for 2,160 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufactured in the cell. The materials cost per unit is $84. The following summary transactions took place during March: Materials were purchased for March production. Conversion costs were applied to production. 960 DVR players were assembled and placed in finished goods. 910 DVR players were sold for $276 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar. $fill in the blank a06528f52faffb5_1 per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar. $fill in the blank a06528f52faffb5_2 per unit c. Journalize the summary transactions (1)–(4) for March. If an amount box does not require an entry, leave it blank. 1. ? ? ? ? 2. ? ? ? ? 3. ? ? ? ? 4. Sale ? ? ? ? 4. Cost ? ? ?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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 $777,600 for 2,160 production hours. Each unit requires 12 minutes of cell process time. During March, 960 DVR players were manufactured in the cell. The materials cost per unit is $84. The following summary transactions took place during March:
- Materials were purchased for March production.
- Conversion costs were applied to production.
- 960 DVR players were assembled and placed in finished goods.
- 910 DVR players were sold for $276 per unit.
a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.
$fill in the blank a06528f52faffb5_1 per hour
b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest dollar.
$fill in the blank a06528f52faffb5_2 per unit
c. Journalize the summary transactions (1)–(4) for March. If an amount box does not require an entry, leave it blank.
| 1. | ? | ? | |
| ? | ? | ||
| 2. | ? | ? | |
| ? | ? | ||
| 3. | ? | ? | |
| ? | ? | ||
| 4. Sale | ? | ? | |
| ? | ? | ||
| 4. Cost | ? | ? | |
| ? |
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