Question
Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $123 per unit of direct materials. The speaker manufacturing assembly cell includes the following
Lean Accounting
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $123 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:
Speaker assembly cell, estimated costs: | ||
Labor | $40,150 | |
Depreciation | 5,390 | |
Supplies | 1,960 | |
Power | 1,460 | |
Total cell costs for the period | $48,960 |
The operating plan calls for 170 operating hours for the period. Each speaker requires 20 minutes of cell process time. The unit selling price for each speaker is $333. During the period, the following transactions occurred:
Purchased materials to produce 535 speaker units.
Applied conversion costs to production of 510 speaker units.
Completed and transferred 485 speaker units to finished goods.
Sold 465 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.
1. | Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryRaw and In Process Inventory | Raw and In Process Inventory | Raw and In Process Inventory |
Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryAccounts Payable | Accounts Payable | Accounts Payable | |
2. | Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryRaw and In Process Inventory | Raw and In Process Inventory | Raw and In Process Inventory |
Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryConversion Costs | Conversion Costs | Conversion Costs | |
3. | Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryFinished Goods Inventory | Finished Goods Inventory | Finished Goods Inventory |
Accounts PayableConversion CostsCost of Goods SoldFinished Goods InventoryRaw and In Process InventoryRaw and In Process Inventory | Raw and In Process Inventory | Raw and In Process Inventory | |
4. Sale | Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesAccounts Receivable | Accounts Receivable | Accounts Receivable |
Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesSales | Sales | Sales | |
4. Cost | Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesCost of Goods Sold | Cost of Goods Sold | Cost of Goods Sold |
Accounts ReceivableConversion CostsCost of Goods SoldFinished Goods InventorySalesFinished Goods Inventory | Finished Goods Inventory | Finished Goods Inventory |
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 | $fill in the blank f45720f12011f85_1 |
Finished Goods Inventory, ending balance | $fill in the blank f45720f12011f85_2 |
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