Connect Tek Inc. manufactures and assembles two major types of telephone assemblies€” a cordless phone and a cellular phone. The process consists of a just-in-time cell for each product. The data that follow concern only the cellular phone just-in-time cell. For the year, Connect Tek Inc. budgeted the following costs for the cellular phone production cell:

Connect Tek plans 2,100 hours of production for the cellular phone cell for the year. The materials cost is $54 per unit. Each assembly requires 18 minutes of cell assembly time. There was no March 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory. The following summary events took place in the cellular phone cell during March:
a. Electronic parts were purchased to produce 7,200 cellular phone assemblies in March.
b. Conversion costs were applied for 7,000 units of production in March.
c. 6,920 units were completed and transferred to finished goods in March.
d. 6,840 units were shipped to customers at a price of $250 per unit.
1. Determine the budgeted cell conversion cost per hour.
2. Determine the budgeted cell conversion cost per unit.

3. Journalize the summary transactions (a) through (d).
4. Determine the ending balance in Raw and In Process Inventory and Finished Goods Inventory.
5.  How does the accounting in a JIT environment differ from traditional accounting?

Conversion Cost Categories Labor Supplies Utilities Total Budget $135,000 55,000 20,000 $210,000