Krisco Company operates under the lean philosophy
Krisco Company operates under the lean philosophy. As such, it has a production cell for its
microwave ovens. The conversion cost for 2,400 hours of production is budgeted for the year at $4,800,000.
During January, 2,000 microwave ovens were started and completed. Each oven requires
6 minutes of cell processing time. The materials cost for each oven is $100.
Please provide answers on a piece of paper
- Use lean accounting to:
a. Determine the budgeted cell conversion cost per hour.
b. Determine the manufacturing cost per unit.
c. Journalize the entry to record the costs charged to the production cell in January.
d. Journalize the entry to record the costs transferred to finished goods
2.Why do lean manufacturers favor pull or “make to order”manufacturing?