Kwanika Co

question 63

Essay

Kwanika Co. operates in a lean manufacturing environment. During its first year of operations, Kwanika budgeted for 40,000 hours in the production of 100,000 units in its Cell X-22. Materials costs were $7.00 per unit. Cell X-22 conversion costs were budgeted for the year as follows: During January, materials for 8,400 units were purchased on account. There were 8,200 units manufactured and 8,000 were sold and shipped to customers for $35 each. Conversion costs are applied based on units of production. Journalize (a) the materials purchases, (b) the application of conversion costs, (c) the transfer from work in process to finished goods, and (d) the sales (all made on account) and associated cost of goods sold for the month of January.

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Definitions:

Company's Culture

The shared values, norms, practices, and beliefs that characterize an organization and influence how employees behave and interact with each other.

Founder

An individual who establishes an organization, company, or initiative.

Socialization Process

refers to the procedure by which an individual learns and acquires the norms, values, behavior, and social skills appropriate to their social position.

Financial Success

The achievement of financial goals and the accumulation of wealth or resources to a level deemed successful by individual or societal standards.