Question

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	$51,360
Depreciation	6,890
Supplies	2,510
Power	1,880
Total cell costs for the period	$62,640

The operating plan calls for 180 operating hours for the period. Each speaker requires 15 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 630 speaker units.
2. Applied conversion costs to production of 600 speaker units.
3. Completed and transferred 575 speaker units to finished goods.
4. Sold 550 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	$

Answer 1

	Budgeted cell conversion cost per hour	348	per hour	=62640/180
	Budgeted cell conversion cost per unit	87	per unit	=348*15/60
	a
1	Raw and in process inventory	69930		=630*111
	Accounts Payable		69930
2	Raw and in process inventory	52200		=600*87
	Conversion costs		52200
3	Finished goods inventory	113850		=575*(111+87)
	Raw and in process inventory		113850
4. Sale	Accounts Receivable	165550		=550*301
	Sales		165550
4. Cost	Cost of goods sold	108900		=550*(111+87)
	Finished goods inventory		108900
	b
	Raw and In Process Inventory, ending balance	8280		=69930+52200-113850
	Finished Goods Inventory, ending balance	4950		=113850-108900