FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Lean Accounting
Vintage Audio Inc. manufactures audio speakers. Each speaker requires $100 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period:
Speaker assembly cell, estimated costs: | ||
Labor | $69,080 | |
|
9,270 | |
Supplies | 3,370 | |
Power | 2,520 | |
Total cell costs for the period | $84,240 |
The operating plan calls for 180 operating hours for the period. Each speaker requires 10 minutes of cell process time. The unit selling price for each speaker is $271. During the period, the following transactions occurred:
- Purchased materials to produce 580 speaker units.
- Applied conversion costs to production of 550 speaker units.
- Completed and transferred 530 speaker units to finished goods.
- Sold 505 speaker units.
There were no inventories at the beginning of the period.
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