Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $100 per unit of direct materials. The speaker manufacturing assembly cell includes the following

Lean Accounting

Vintage Audio Inc. manufactures audio speakers. Each speaker requires $100 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:

Speaker assembly cell, estimated costs:
Labor $43,490
Depreciation 5,830
Supplies 2,120
Power 1,600
Total cell costs for the period $53,040

The operating plan calls for 170 operating hours for the period. Each speaker requires 15 minutes of cell process time. The unit selling price for each speaker is $271. During the period, the following transactions occurred:

  1. Purchased materials to produce 525 speaker units.
  2. Applied conversion costs to production of 500 speaker units.
  3. Completed and transferred 480 speaker units to finished goods.
  4. Sold 455 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
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

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 $

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

Interpretation And Application Of International Standards On Auditing

Authors: Steven Collings

1st Edition

0470661127, 978-0470661123

More Books

Students also viewed these Accounting questions