Chap 12 Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each spe

Question

Chap 12 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 Depreciation Supplies Power Total cell costs for the period $66,300 The operating plan calls for 170 operating hours for the period. Each speaker requires 12 minutes of cell process time The unit selling price for each speaker is $271. During the period, the following transactions occurred: $54,370 7,290 2,650 1,990 1. Purchased materials to produce 520 speaker units. 2. Applied conversion costs to production of 495 speaker units. 3. Completed and transferred 475 speaker units to finished goods 4. Sold 450 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. 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

Explanation / Answer

Accounts Title Dr Cr 1 Raw and In process inventory $52,000 Accounts Payable $52,000 (520*100) 2 Raw and In process inventory 38610 Conversion cost 38610 per hour rate= 66300/170 390 For 495 speakers (495*390*12/60) 38610 3 Finished Goods inventory 84550 Raw and In process inventory 84550 (475*100)+(475*390*12/60) 4 Accounts receivable 121950 Sales (450*271) 121950 Cost of Good sold 80100 Finished Goods Inventory 80100 (450*100)+(450*390*12/60) ans 2 Raw and In process inventory 6060 Material (520-475)*100 4500 Conversion cost (495-475)*390*12/60 1560 Total 6060 Finished Goods Invemtory 4450 (25*100)+(25*390*12/60) If any doubt please comment

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