Vintage Audio Inc. manufacture
Vintage Audio Inc. manufactures audio speakers. Each speakerrequires $108 per unit of direct materials. The speakermanufacturing assembly cell includes the following estimated costsfor the period:
| Speaker assembly cell, estimated costs: | ||
| Labor | $34,100 | |
| Depreciation | 4,570 | |
| Supplies | 1,660 | |
| Power | 1,250 | |
| Total cell costs for theperiod | $41,580 | |
The operating plan calls for 165 operating hours for the period.Each speaker requires 20 minutes of cell process time. The unitselling price for each speaker is $292. During the period, thefollowing transactions occurred:
- Purchased materials to produce 730 speaker units.
- Applied conversion costs to production of 695 speakerunits.
- Completed and transferred 665 speaker units to finishedgoods.
- Sold 635 speaker units.
There were no inventories at the beginning of the period.
a. Journalize the summary transactions (1)-(4)for the period. Round the per unit cost to the nearest cent and usein subsequent computations. If an amount box does not require anentry, leave it blank.
| 1. | |||
| 2. | |||
| 3. | |||
| 4. Sale | |||
| 4. Cost | |||
b. Determine the ending balance of raw and inprocess inventory and finished goods inventory.
| Raw and In Process Inventory, ending balance | $ |
| Finished Goods Inventory, ending balance | $ |
Answer:
| Budgeted cell conversion cost per hour | 252 | per hour | =41580/165 |
| Budgeted cell conversion cost per unit | 84 | per unit | =252*(20/60) |
| a | |||
| Raw and in process inventory | 78840 | =730*108 | |
| Accounts Payable | 78840 | ||
| Raw and in process inventory | 58380 | =695*84 | |
| Conversion costs | 58380 | ||
| Finished goods inventory | 127680 | =665*(108+84) | |
| Raw and in processinventory | 127680 | ||
| Accounts Receivable | 185420 | =635*292 | |
| Sales | 185420 | ||
| Cost of goods sold | 121920 | =635*(108+84) | |
| Finished goodsinventory | 121920 | ||
| b | |||
| Raw and In Process Inventory, ending balance | 9540 | =78840+58380-127680 | |
| Finished Goods Inventory, ending balance | 5760 | =127680-121920 |
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