Just-in-Time Journal Entries Audio Master, Inc., manufactures audio speakers. Ea

Question

Just-in-Time Journal Entries

Audio Master, 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:

The operating plan calls for 160 operating hours for the period. Each speaker requires 12 minutes of cell process time. The unit selling price for each speaker is $301. During the period, the following transactions occurred:

Purchased materials to produce 380 speaker units.

Applied conversion costs to production of 360 speaker units.

Completed and transferred 345 speaker units to finished goods.

Sold 330 speaker units.

There were no inventories at the beginning of the period.

a. Journalize the summary transactions (1)-(4) for the period.

b. Determine the ending balance for raw and in process inventory and finished goods inventory.

Speaker assembly cell, estimated costs: Labor $57,070 Depreciation 7,660 Supplies 2,780 Power 2,090 Total cell costs for the period $69,600

Explanation / Answer

Debit Credit 1 Material A/C dr.            42,180 To Accounts Payable A/C         42,180 2 Work in process Stock            65,642 To Material A/C         39,960 To Labour Cost         25,682 3 Finished Goods A/C dr.            75,436 To Work in process A/C         62,906 To Depriciation 7660 To Supplies 2780 To Power 2090 4 Cost of goods Sold A/C dr.            72,157 To Finished Goods         72,157 raw material Ending balance 2220 Work in Process material Stock              2,735 Finished Stock Stock              3,280 Working Purchase material 380 Price in $ 111 Prurchase value 42180 Units put to use 360 Closing Stock of raw material 20 Value of raw material Put to use 39960 Value of Closing Stock of Raw material 2220 Items Put to use 360 Raw material cost for put to use            39,960 Labour cost ((57070/160)/5)*360            25,682 Total Conversion Cost            65,642 Conversion cost per unit            182.34 Units Transferred 345 Process Inventory 15 Units Transferred Cost            62,906 Process Inventory Cost              2,735 Units Transferred 345 Conversion Cost            62,906 Depriciation 7660 Supplies 2780 power 2090 Total Cost            75,436 Cost Per Unit            218.66 Units Sale 330 Closing Stock of finished Stock 15 Cost of Goods Sold            72,157 value of Finished Goods              3,280

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