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	$41,730
Depreciation	5,600
Supplies	2,040
Power	1,525
Total cell costs for the period	$50,895

The operating plan calls for 195 operating hours for the period. Each speaker requires 20 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 550 speaker units.
2. Applied conversion costs to production of 525 speaker units.
3. Completed and transferred 500 speaker units to finished goods.
4. Sold 480 speaker units.

There were no inventories at the beginning of the period.

a. Journalize the summary transactions (1)-(4) for the period. Do not round interim calculations.

1.	Raw and In Process Inventory	Fill in the blank
	Accounts Payable		Fill in the blank
2.	Raw and In Process Inventory	Fill in the blank
	Conversion Costs		Fill in the blank
3.	Finished Goods Inventory	Fill in the blank
	Raw and In Process Inventory		Fill in the blank
4. Sale	Accounts Receivable	Fill in the blank
	Sales		Fill in the blank
4. Cost	Cost of Goods Sold	Fill in the blank
	Finished Goods Inventory		Fill in the blank

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
Finished Goods Inventory, ending balance	$ fill in the blank

2. Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards. Each board requires 4 minutes of board assembly time. After each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 12 minutes to complete.

The final assembly for each stereo unit requires 22 minutes and is also done in batches of 50 units. A batch of 50 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The units wait while the setup is performed. In the final test, the 50-unit batch is tested one at a time. Each test requires 6 minutes. The completed batch, after all testing, is sent to shipping for packaging and final shipment to customers. A complete batch of 50 units is sent from testing to shipping. The Shipping Department is located next to testing. Thus, there is no move time between these two operations. Packaging and labeling requires 6 minutes per unit.

Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 50 units. Categorize the non-value-added time into wait and move time. Round the percentage to one decimal place.

Value-added lead time			fill in the blank 1 min.
Non-value-added lead time:
	Wait time lead time	fill in the blank 2 min.
	Move time lead time	fill in the blank 3 min.
Total non-value-added lead time			fill in the blank 4 min.
Total lead time			fill in the blank 5 min.
Value-added ratio (as a percent)			fill in the blank 6 %

3. Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 73 units. The process time for each step is as follows:

Process Step 1	4	minutes
Process Step 2	7	minutes
Process Step 3	9	minutes
Process Step 4	5	minutes

The time required to move each batch between steps is 10 minutes. In addition, the time to move raw materials to Process Step 1 is also 10 minutes, and the time to move completed units from Process Step 4 to finished goods inventory is 10 minutes.

The new lean layout will allow the company to reduce the batch sizes from 73 units to 4 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same.

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed production approaches. If required, round percentages to one decimal place.

	Present Approach		Proposed Approach
Value-added time	fill in the blank 1	min	fill in the blank 2	min
Non-value-added time	fill in the blank 3	min	fill in the blank 4	min
Total lead time	fill in the blank 5	min	fill in the blank 6	min
Value-added ratio (as a percent)	fill in the blank 7	%	fill in the blank 8	%