Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $18. The budgeted conversion cost for the year is $112,200 for 1,700 production hours. A unit of Style Omega requires 15 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 910 Style Omega units for June. 2. Conversion costs were applied to 910 Style Omega units of production. 3. 850 units of Style Omega were completed in June. 4. 790 units of Style Omega were sold in June for $70 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. $ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. per unit c. Journalize the summary transactions (1)-(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank. 1. 2. 3. 4. Sale 4. Cost
Lean Accounting Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $18. The budgeted conversion cost for the year is $112,200 for 1,700 production hours. A unit of Style Omega requires 15 minutes of cell production time. The following transactions took place during June: 1. Materials were acquired to assemble 910 Style Omega units for June. 2. Conversion costs were applied to 910 Style Omega units of production. 3. 850 units of Style Omega were completed in June. 4. 790 units of Style Omega were sold in June for $70 per unit. a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent. $ per hour b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent. per unit c. Journalize the summary transactions (1)-(4) for June. If required, round your answers to one decimal place. If an amount box does not require an entry, leave it blank. 1. 2. 3. 4. Sale 4. Cost
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Lean Accounting
Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials
cost per unit of $18. The budgeted conversion cost for the year is $112,200 for 1,700 production hours. A unit of
Style Omega requires 15 minutes of cell production time. The following transactions took place during June:
1. Materials were acquired to assemble 910 Style Omega units for June.
2. Conversion costs were applied to 910 Style Omega units of production.
3. 850 units of Style Omega were completed in June.
4. 790 units of Style Omega were sold in June for $70 per unit.
a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest cent.
per hour
$
b. Determine the budgeted cell conversion cost per unit. If required, round to the nearest cent.
per unit
c. Journalize the summary transactions (1)-(4) for June. If required, round your answers to one decimal place. If
an amount box does not require an entry, leave it blank.
1.
2.
3.
4. Sale
4. Cost
Expert Solution
Step 1: Introduce to journal entry
Journal Entry :— It is an act of recording transactions in books of account when transaction occurred. It is the first step in recording transactions in books of account. General Rule :—1) Debit the receiver, credit the giver. 2) Debit what comes in, credit what goes out. 3) Debit all expenses & losses, credit all income & gains.
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