Lean Accounting

The annual budgeted conversion costs for a lean cell are $194,400 for 2,700 production hours. Each unit produced by the cell requires 18 minutes of cell process time. During the month, 1,450 units are manufactured in the cell. The estimated materials costs are $56 per unit.

(Round the per unit cost to the nearest cent and use in subsequent computations. If required, round your answers to the nearest dollar.)

Journalize the following entries for the month:

a. Materials are purchased to produce 1,530 units.

b. Conversion costs are applied to 1,450 units of production.

c. The cell completes 1,380 units, which are placed into finished goods.

If an amount box does not require an entry, leave it blank.

a.	Raw and In Process Inventory
	Accounts Payable
b.	Raw and In Process Inventory
	Conversion Costs
c.	Finished Goods Inventory
	Raw and In Process Inventory