Audio Escape Inc. manufactures audio speakers. Each speaker requires $145 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	$6,300.00
3	Depreciation	2,800.00
4	Supplies	2,400.00
5	Power	1,100.00
6	Total cell costs for the period	$12,600.00

The operating plan calls for 180 operating hours for the period. Each speaker requires 18 minutes of cell process time. The unit selling price for each speaker is $360. During December, the following transactions occurred:

Dec.	2	Purchased materials to produce 625 speaker units.
	6	Applied conversion costs to production of 600 speaker units.
	21	Completed and transferred 585 speaker units to finished goods.
	29	Sold 570 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.

CHART OF ACCOUNTS

Audio Escape Inc.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
150	Raw and In Process Inventory
151	Finished Goods Inventory
180	Land
190	Equipment
191	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customers Refunds Payable
221	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
34	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
511	Conversion Costs
521	Advertising Expense
523	Depreciation Expense-Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense