Lean Mfg: Vintage Audio Inc Vintage Audio Inc. manufactures audio speakers. Each speaker requires $108 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:Speaker assembly cell, estimated costs:Labor$64,060Depreciation8,590Supplies3,120Power2,350Total cell costs for the period$78,120The operating plan calls for 155 operating hours for the period. Each speaker requires 10 minutes of cell process time. The unit selling price for each speaker is $292. During the period, the followingtransactions occurred:1. Purchased materials to produce 440 speaker units.2. Applied conversion costs to production of 420 speaker units.3. Completed and transferred 400 speaker units to finished goods.4. Sold 385 speaker units.There were no inventories at the beginning of the period.a. Journalize the summary transactions (1)-(4) for the period. Round the per unit cost to the nearest cent and use in subsequent computations. If an amount box does not require an entry, leave it blank.Raw and In Process Inventory1.Accounts Payable vRaw and In Process Inventory2.Conversion Costs vFinished Goods Inventory3.Raw and In Process InventoryAccounts Receivable v4. SaleSalesCost of Goods Sold4. CostFinished Goods Inventory0000 00 b. Determine the ending balance of raw and in process inventory and finished goods inventory.Raw and In Process Inventory, ending balance$Finished Goods Inventory, ending balance$

Budgeted conversion cost per unit = $78,120 / 155 *10/60 = $84 per unit

Answered: b. Determine the ending balance of raw…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter13: Lean Manufacturing And Activity Analysis

Section: Chapter Questions

Problem 14E

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Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
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Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?
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b. Determine the ending balance of raw and in process inventory and finished goods invent Raw and In Process Inventory, ending balance Finished Goods Inventory, ending balance $