Question
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $127 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $127 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:
Speaker assembly cell, estimated costs: | ||
Labor | $45,050 | |
Depreciation | 6,040 | |
Supplies | 2,200 | |
Power | 1,655 | |
Total cell costs for the period | $54,945 |
The operating plan calls for 185 operating hours for the period. Each speaker requires 20 minutes of cell process time. The unit selling price for each speaker is $344. During the period, the following transactions occurred:
- Purchased materials to produce 425 speaker units.
- Applied conversion costs to production of 405 speaker units.
- Completed and transferred 385 speaker units to finished goods.
- Sold 370 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. | |||
2. | |||
3. | |||
4. Sale | |||
4. Cost | |||
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started