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Problem - Just-in-time journal entries - Motion Media Inc. uses a just-in-time strategy to manufacture DVD players. The company manufactures DVD players through a single product cell. The budgeted conversion cost for the year is $760,500 for 1,950 production hours. Each unit requires 10 minutes of cell process time. During May, 950 DVD players are manufactured in the cell. The materials cost per unit is $85. The following summary transactions took place during May:
1. Materials are purchased for May production.
2. Conversion costs were applied to production.
3. 950 DVD players are assembled and placed in finished goods.
4. 900 DVD players are sold for $260 per unit.
Required -
a. Determine the budgeted cell conversion cost per hour.
b. Determine the budgeted cell conversion cost per unit.
c. Journalize the summary transactions (1)-(4) for May.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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