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Just in Time Activity

Foley Electronics Corporation manufactures electronic motor drives. For one customer's just-in-time cell last year: planned labor/overhead was $76.8 million; materials cost $25 per unit; planned production was 9,600 hours to make 76,800 drives. In August: actual production was 5,200 units; 5,040 units were shipped. Determine the budgeted cell conversion cost per hour.

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Lucy Heartfilia
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263 views3 pages

Just in Time Activity

Foley Electronics Corporation manufactures electronic motor drives. For one customer's just-in-time cell last year: planned labor/overhead was $76.8 million; materials cost $25 per unit; planned production was 9,600 hours to make 76,800 drives. In August: actual production was 5,200 units; 5,040 units were shipped. Determine the budgeted cell conversion cost per hour.

Uploaded by

Lucy Heartfilia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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91.

 Foley Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The process
consists of a just-in-time cell for each customer. The following information relates only to
one customer's just-in-time cell. For the year planned labor and overhead was $76,800,000;
materials costs, $25 per unit. Planned production included 9,600 hours to produce 76,800
motor drives. Actual production for the month of August was 5,200 units, and motor drives
shipped amounted to 5,040 units. From the foregoing information, determine the budgeted
cell conversion cost per hour. 

A. $8,800
B. $800
C. $7,200
D. $8,000

92. Foley Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The process
consists of a just-in-time cell for each customer. The following information relates only to
one customer's just-in-time cell for the coming year. Projected labor and overhead,
$4,800,000; materials costs, $25 per unit. Planned production included 2,400 hours to
produce 19,200 motor drives. Actual production for August was 1,300 units, and motor
drives shipped amounted to 1,260 units.
From the foregoing information, determine the budgeted cell conversion cost per unit. 

A. $250.00
B. $267.00
C. $308.00
D. $317.00

93. Foley Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The process
consists of a just-in-time cell for each customer. The following information relates only to
one customer's just-in-time cell for the coming year. Projected labor and overhead,
$4,800,000; materials costs, $25 per unit. Planned production included 2,400 hours to
produce 19,200 motor drives. Actual production for August was 1,300 units, and motor
drives shipped amounted to 1,260 units.
From the foregoing information, determine the manufacturing cost per unit. 

A. $292.00
B. $275.00
C. $333.00
D. $342.00

94. Foley Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The process
consists of a just-in-time cell for each customer. The following information relates only to
one customer's just-in-time cell for the coming year. Projected labor and overhead,
$4,800,000; materials costs, $25 per unit. Planned production included 2,400 hours to
produce 19,200 motor drives. Actual production for August was 1,300 units, and motor
drives shipped amounted to 1,260 units.
From the foregoing information, determine the amount of the conversion costs charged to
Raw and In Process Inventory during August. 
A. $440,000
B. $400,000
C. $360,000
D. $325,000

95. Foley Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The process
consists of a just-in-time cell for each customer. The following information relates only to
one customer's just-in-time cell for the coming year. Projected labor and overhead,
$4,800,000; materials costs, $25 per unit. Planned production included 2,400 hours to
produce 19,200 motor drives. Actual production for August was 1,300 units, and motor
drives shipped amounted to 1,260 units.
From the foregoing information, determine the production costs transferred to Finished
Goods during August.
 
A. $346,500
B. $412,500
C. $357,500
D. $400,000

96. Foley Electronics Corporation manufactures and assembles electronic motor drives for
video cameras. The company assembles the motor drives for several accounts. The process
consists of a just-in-time cell for each customer. The following information relates only to
one customer's just-in-time cell for the coming year. Projected labor and overhead,
$4,800,000; materials costs, $25 per unit. Planned production included 2,400 hours to
produce 19,200 motor drives. Actual production for August was 1,300 units, and motor
drives shipped amounted to 1,260 units.
From the foregoing information, determine the production costs transferred to Cost of Goods
Sold during August. 

A. $357,500
B. $412,500
C. $400,000
D. $346,500

97. Accounting for Just-In-Time operations requires fewer transactions because 

A. large batches of inventory are combined in a smaller number of transactions


B. costs are accumulated in departments and then transferred to the next department
C. combined material and conversion costs are transferred to finished goods.
D. costs are transferred from department to department thus allowing for better controls in
costs

98. Just-In-Time accounting has fewer transactions because 


A. all manufacturing costs are combined in one account called Raw and In Process Inventory
B. employees in production cells are required to perform various tasks, some are considered
direct costs and some are indirect costs. Therefore the distinction is eliminated.
C. Less movement of inventory between department to department.
D. All of the above.
99. The budgeted cell conversion cost rate includes which of the following? 

A. factory overhead only


B. direct labor and direct materials only
C. direct labor, direct materials, and factory overhead
D. direct labor and factory overhead only

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