Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $111 per unit of direct materials. The speaker manufacturing assembly cell includes the following

image text in transcribed
image text in transcribed
Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $111 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor $67,770 Depreciation 9,090 Supplies 3,310 Power 2,480 Total cell costs for $82,650 the period 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 $301. During the period, the following transactions occurred: 1. Purchased materials to produce 425 speaker units. 2. Applied conversion costs to production of 405 speaker units. 3. Completed and transferred 385 speaker units to finished goods. 4. Sold 370 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. 1. Raw and In Process Inventory Accounts Payable Raw and In Process Inventory Conversion Costs 3. Finished Goods Inventory Raw and In Process Inventory 4. Sale Accounts Receivable Sales 4. Cost Cost of Goods Sold Finished Goods Inventory 2. Feedback Check My Work 1. Accounts Payable 2. Raw and In Process Inventory Conversion Costs 3. Finished Goods Inventory Raw and In Process Inventory 4. Sale Accounts Receivable Sales 4. Cost Cost of Goods Sold Finished Goods Inventory v Feedback Check My Work a. In lean manufacturing, there are fewer transactions to record, thus simplifying the accounting system. Som combined. For example, all in-process work is combined with raw materials to form a new account, Raw and I Inventory and direct labor is also combined with other costs to form a new account titled Conversion Costs. In directly assigned to product cells; thus, less factory overhead is allocated to products. The cell conversion rate predetermined factory overhead rate, except that includes all conversion costs in the numerator. 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 Feedback Check My Work b. Set up a T-account for Raw and In Process Inventory and Finished Goods Inventory and post your entries fre obtain the balances. Feedback Check My Work Partially correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security And Loss Prevention An Introduction

Authors: Philip Purpura CPP Florence Darlington Technical College

7th Edition

0128117958, 9780128117958

More Books

Students also viewed these Accounting questions

Question

Simplify each power of i. i -14

Answered: 1 week ago