Lean Accounting

Power Audio Inc. manufactures audio speakers. Each speaker requires $119 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:

Line Item Description	Amount
Labor	$72,450
Depreciation	9,720
Supplies	3,530
Power	2,650
Total cell costs for the period	$88,350

The operating plan calls for 190 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for each speaker is $322. During the period, the following transactions occurred:

1. Purchased materials to produce 520 speaker units.
2. Applied conversion costs to production of 495 speaker units.
3. Completed and transferred 475 speaker units to finished goods.
4. Sold 450 speaker units.

There were no inventories at the beginning of the period.

a. Journalize the summary transactions (1)-(4) for the period. Round the per unit cost to the nearest cent and use in subsequent computations. If an amount box does not require an entry, leave it blank.

Transaction	Account	Debit	Credit
1.	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory
	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory
2.	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory
	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory
3.	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory
	Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process Inventory
4. Sale	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales
	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales
4. Cost	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales
	Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySales

Question Content Area

b. Determine the ending balance of raw and in process inventory and finished goods inventory. Raw and In Process Inventory, ending balance $ Finished Goods Inventory, ending balance $