Question
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:
- Purchased materials to produce 525 speaker units.
- Applied conversion costs to production of 500 speaker units.
- Completed and transferred 480 speaker units to finished goods.
- 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 | $ |
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