Question

# The Bright Lamp Company has budgeted its conversion cost for the small lamp production as \$85,000...

The Bright Lamp Company has budgeted its conversion cost for the small lamp production as \$85,000 for 1,300 production hours. Each unit produced by the cell requires 15 minutes of process time. During the month, 3,800 units are manufactured in the cell. The estimated material cost is \$18 per unit. Provide the following journal entries.

In your computations, round per unit cost to two decimal places and use rounded amount in subsequent calculations. If required, round your final answers to the nearest dollar.

a. Materials are purchased to produce 4,000 units.

 Raw and In Process Inventory_________ Accounts Payable ____________

b. Conversion costs are applied to 3,800 units of production.

 Raw and In Process Inventory _________ Conversion Costs ___________

c. 3,650 units are placed into finished goods.

 Finished Goods Inventory _________ Raw and In Process Inventory _________

 Per hour conversion cost = 85000/1300= 65.38 a Raw and In Process Inventory 68400 =3800*18 Accounts Payable 68400 b Raw and In Process Inventory 62111 =3800*(15/60)*65.38 Conversion Costs 62111 c Per unit cost = (68400+62111)/3800= \$34.35 Finished Goods Inventory 125378 =3650*34.35 Raw and In Process Inventory 125378 Note: The final answer might vary slightly due to rounding off

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