Auto-Motion is a lean manufacturer of self-driving wheelchairs. The company budgets $560,000 of conversion costs and...

1) Credit Debit $439,040 $439,040 Remarks and Workings [98 units x $4,480] (To record raw materials purchased on account) [93 units x 30 hours x ($560,000 / 2,000)] (To conversion costs applied to production) $781,200 $781,200 $781,200 Transaction General Journal Raw Materials Inventory Accounts Payable b) Work in Process Inventory Conversion costs Conversion costs Various Accounts d) Accounts Receivable Sales revenue e-1) Finished goods Inventory Work in Process Inventory e-2) Cost of Goods Sold Finished goods Inventory $781,200 $1,445,000 $1,445,000 $1,197,840 (To record actual conversion costs incurred) (85 units x $17,000) (To record sale on account) [Ref: Workings] |(To record cost of goods transferred to finished goods) [Ref: Workings] |(To cost of finished goods sold) $1,197,840 $1,094,800 $1,094,800 Workings: $416,640 [93 units x $4,480] $781,200 [Ref: Entry #(1b)] $1,197,840 Direct materials cost Convesion costs applied to production Total manufacturing costs Number of units produced Unit product cost Number of units sold Cost of goods sold 93 $12,880 ($1197840 / 93 units] 85 $1,094,800 ($12880 x 85 units]

2) Direct materials cost per unit Number of units in work in process Cost of ending work in process $4,480 5 [98 - 93] $22,400 [$4480 x 5 units] Unit product cost Number of units in finished goods Cost of ending finished goods $12,880 [As calculated in Part-1] 8 [93-85] $103,040 ($12880 x 8 units] Convesion costs applied to production Actual conversion costs incurred Balance in conversion costs $781,200 [Ref: Entry #(1b)] $781,200 [Ref: Entry #1(c)] $0 [$781200 - $781200]