The annual budgeted conversion costs for a lean cell are S 176,400 for 2.800 pro

Question

The annual budgeted conversion costs for a lean cell are S 176,400 for 2.800 production hours. Each unit or i ced b, th e tel requires Om nutes of cell process time. During the month, 2.480 units are manufactured in the cell. The estimated materials cost is $44 per unit. Provide the following journal entries: (Do not round interim calculations. If required, round your answers to the nearest dollar.) a Materials are purchased to produce 2,610 units b. Conversion costs are applied to 2,480 units of production. c. 2,360 units are completed and placed into finished goods Raw and In Process Inventory a. Accounts Payable aw and In Process Imventor bRaw and In Process Inventory Conversion Costs Finished Goods inventory C Raw and In Process Inventory Feedbacic 7 Check My Work a. Increase Raw and In Process Inventory (debit) and increase Accounts Payable (credit) for per unit amount times 2,610 units. Check My Work 4 more Check My Work uses remaining Next Previous 2:53 PM 6/27/2018

Explanation / Answer

Working:

Conversion cost per unit = $176400/16800 = $10.50 per unit

Number of units assembled = (2800 hours x 60)/10 minutes = 168000 mins/10 mins = 16800 units

a. Raw and In Process Inventory 114840 Accounts Payable (2610 x $44) 114840 b. Raw and In Process Inventory 26040 Conversion Costs (2480 x $10.50) 26040 c. Finished Goods Inventory [2360 x ($44 + $10.50)] 128620 Raw and In Process Inventory 128620

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