Lean Accounting Vintage Audio Inc, manufactures audio speakers. Each speaker requires $96 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor $35,060 Depreciation 4,700 Supplies 1,710 Power 1,280 Total cell costs for the period $42,750 The operating plan calls for 190 operating hours for the period. Each speaker requires 20 minutes of cell process time. The unit selling price for each speaker is $260. During the period, the following transactions occurred: 1. Purchased materials to produce 675 speaker units. 2. Applied conversion costs to production of 640 speaker units. 3. Completed and transferred 615 speaker units to finished goods. 4. Sold 585 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. Raw and In Process Inventory 122.50 Accounts Payable 122.330 122.880 Raw and In Process Inventory Accounts Payable 122.880 2 Raw and In Process Inventory Conversion Costs 3 Finished Goods Inventory Raw and In Process Inventory II II II II 4. Sale Accounts Receivable Sales 4. Cost Cost of Goods Sold Finished Goods Inventory BA Feedback Check My Work 2. In lean manufacturing, there are fewer transactions to record, thus simplifying the accounting system. Some accounts are combined. For example, all in- process work is combined with raw materials to form a new account, Raw and In Process (RIP) Inventory and direct labor is also combined with other costs form a new account titled Conversion Costs. Indirect labor is directly assigned to product cells; thus, less factory overhead is allocated to products. The cell conversion rate is similar to a predetermined factory overhead rate, except that it 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 Check My Wort b. Set up a T-account for Raw and In Process Inventory and Finished Goods Inventory and post your entries from Req () to obtain the balances. Check My Work Partially correct