Lean Accounting

Power Audio Inc. manufactures audio speakers. Each speaker requires $104 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:

Line Item Description	Amount
Labor	$57,790
Depreciation	7,750
Supplies	2,820
Power	2,110
Total cell costs for the period	$70,470

The operating plan calls for 145 operating hours for the period. Each speaker requires 10 minutes of cell process time. The unit selling price for each speaker is $281. During the period, the following transactions occurred:

1. Purchased materials to produce 365 speaker units.
2. Applied conversion costs to production of 345 speaker units.
3. Completed and transferred 330 speaker units to finished goods.
4. Sold 320 speaker units.

There were no inventories at the beginning of the period.

Question Content Area

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
2.
3.
4. Sale
4. Cost

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 ___________