Bright Lamp Company Has Budgeted Its Conversion Cost for Small

question 90

Essay

Bright Lamp Company has budgeted its conversion cost for 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 materials cost is $18 per unit. Journalize entries for the following:
a. Materials are purchased to produce 4,000 units.
b. Conversion costs are applied to 3,800 units of production. Round to the nearest cent.
c. The cell completes 3,650 units, which are placed into finished goods. Round to the nearest dollar.

---

Definitions:

Slack

The amount of time a task in a project can be delayed without causing a delay to subsequent tasks or the project finish date.

Activity Duration

The total time taken from the start to the completion of an activity or task within a project.

Critical Path Methods

A project management technique that identifies the longest sequence of dependent tasks and allocates resources to minimize total project duration.

Slack Time

Free time for an activity.