Audio Escape Inc. manufactures audio speakers. Each speaker requires $125 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for December:

1	Speaker assembly cell, estimated costs:
2	Labor	$5,800.00
3	Depreciation	2,900.00
4	Supplies	2,100.00
5	Power	20,700.00
6	Total cell costs for the period	$31,500.00

The operating plan calls for 210 operating hours for the period. Each speaker requires 18 minutes of cell process time. The unit selling price for each speaker is $380. During December, the following transactions occurred:

Dec.	2	Purchased materials to produce 800 speaker units.
	6	Applied conversion costs to production of 780 speaker units.
	21	Completed and transferred 765 speaker units to finished goods.
	29	Sold 750 speaker units.

There were no inventories at the beginning of December.

Required:

A.

Journalize the summary transactions for December. Refer to the Chart of Accounts for exact wording of account titles.

B.

Determine the ending balance for raw and in process inventory and finished goods inventory.

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10