The Thudaka Company Has Budgeted Its Conversion Cost for the Small

question 11

Essay

The Thudaka Company has budgeted its conversion cost for the small lamp production as $65,000 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 material cost is $18 per unit. Provide the following journal entries.
(a) Materials are purchased to produce 4,000 units.
(b) Conversion costs are applied to 3,800 units of production.
(c) 3,650 units are placed into finished goods.

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Definitions:

Boiling Point

The temperature at which a liquid’s vapor pressure equals the external pressure surrounding the liquid, causing it to turn into vapor.

Molecules

The smallest unit of a chemical compound that can exist, composed of two or more atoms bonded together chemically.

Compound Name

The designation of a chemical substance based on its composition and structure.

Acetals

Chemical compounds formed from the reaction between an aldehyde or ketone and a diol, featuring two ether-like oxygen atoms bonded to the same carbon.