Name two (2) value added and one non-value added activities you have experienced in a visit to the dentist office for a teeth cleaning.

Roo Mfg produces automobile instrument panels. Roo Mfg has adopted the JIT philosophy in their manufacturing plant. For the first year, Roo Mfg budgeted the following costs: All work must be shown for credit.

Conversion Cost categories Budget

Labor $642,000

Supplies 112,000

Utilities 26,000

Total $780,000

Roo Mfg plans 3,000 hours of production for the first year. The materials cost is $115 per instrument panel. Each assembly of a panel requires 24 minutes.

The following events took place during the month of October:

1. Electronic parts were purchased to produce 7,600 instrument panels in October.

2. Conversion costs were applied for the production of 7,500 units in October.

3. 7,420 units were started, completed, and transferred to finished goods in October.

4. 7,300 units were sold to customers at a price of $400 per unit.

A) Determine the budgeted conversion cost per hour. (2 points)

Answer:

B) Determine the budgeted conversion cost per unit. (2 points)

Answer:

C) Journalize the transactions 1 through 4. (10 points)

Date	Account Description	Debit	Credit