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

Question

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

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

Lean Accounting Vintage Audio Inc. manufactures audio speakers. Each speaker requires $48 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 $30,000 12,000 6,000 2,000 $50,000 The operating plan calls for 800 operating hours for the period. Each speaker requires 24 minutes of cell process time. The unit selling price for each speaker is $90. During the period, the following transactions occurred: 1. Purchased materials to produce 2,000 speaker units 2. Applied conversion costs to production of 1,800 speaker units 3. Completed and transferred 1,700 speaker units to finished goods 4. Sold 1,600 speaker units There were no inventories at the beginning of the period

Explanation / Answer

1 Raw and in process inventory 96000           Accounts payable 96000 2 Raw and in process inventory 50000             Conversion cost 50000 3 Finished goods inventory 124100 (73*1700)               Raw and in process inventory 124100 4 Accounts receivable 144000               Sales revenue 144000 Cost of goods sold 116800 (73*1600)              Finsihed goods inventory 116800

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