Red Ray Media Inc. uses a just-in-time strategy to manufacture DVD players. The company manufactures DVDs through a single product cell. The budgeted conversion cost for the year is $904,500 for 2,010 production hours. Each unit requires 12 minutes of cell process time. During March, 900 DVDs are manufactured in the cell. The materials cost per unit is $65. The following summary transactions took place during March:

1. Materials are purchased for March production.

2. Conversion costs were applied to production.

3. 900 DVDs are assembled and placed in finished goods.

4. 860 DVDs are sold for $275 per unit.

a. Determine the budgeted cell conversion cost per hour.

b. Determine the budgeted cell conversion cost per unit.

c. Journalize the summary transactions (1)–(4) for March.