8. 4. Determine the ending balance in Raw and In Process Inventory and Finished

Question

8.

4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory.

Raw and In Process Inventory $ Finished Goods Inventory $ Just-in-Time Accounting Optic Matrix Inc. manufactures and assembles automobile instrument panels for both Yokohama Motors and Detroit Motors. The process consists of a just-in-time product cell for each customer's instrument assembly. The data that follow concern only the Yokohama just-in-time cell For the year, Optic Matrix Inc. budgeted the following costs for the Yokohama production cell Conyersion Cost Categories Labor Supplies Utilities Budget $188,500 71,400 25,700 $285,600 Total Optic Matrix Inc. plans 3,400 hours of production for the Yokohama cell for the year. The materials cost is $71 per instrument assembly. Each assembly requires 18 minutes of cell assembly time. There was no November 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory The following summary events took place in the Yokohama cell during November: a. Electronic parts and wiring were purchased to produce 11,550 instrument assemblies in November b. Conversion costs were applied for the production of 10,950 units in November. c. 10,730 units were started, completed, and transferred to finished goods in November. d. 10,410 units were shipped to customers at a price of $336 per unit. If required, round to the nearest cent. Required: Hint 1. Determine the budgeted cell conversion cost per hour 84 per hour 2. Determine the budgeted cell conversion cost per unit. 25.2 per unit

Explanation / Answer

c. Finishes Goods Dr, 1032226 ((71+25.2)*10730)

To Raw and In process Inventory 1032226

d Sale:

Receivable Dr. 3497760 (10410*336)

To Sales 3497760

Cost:

Cost of Goods Sold Dr. 1001442 (10410 * (71+25.2))

To Finished Goods 1001442

4. Ending balance of Inventory:

Raw and In process Inventory:

Electronic parts remaining : (11550-10950)*71 = 42,600

Work-in process: (10950-10730) * (71+25.2) = 21164

total: 63,764

Finished Goods Inventory: (10730 - 10410) * (71+25.2) = 30,784

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