The Kwanika Co

question 66

Short Answer

The 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. Material costs were $7 per unit. Cell X-22 conversion costs were budgeted for the year as follows:
During January, material for 8,400 units was purchased on account.  There were 8,200 units manufactured and 8,000 were sold shipped to customers for $35 each. Journalize:
(a) the material purchases
(b) the application of conversion costs
(c) the transfer from work in process to finished goods
(d) the sales (were made on account) and associated cost of goods sold for the month of January.

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Definitions:

Existing State

The current conditions or circumstances of a system, situation, or state of affairs.

Desired State

A future condition or situation that an individual or organization aims to achieve.

Perfect Rationality

A decision strategy that is completely informed, perfectly logical, and oriented toward economic gain.

Nobel Prize

A set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.