The annual budgeted conversion costs for a lean cell are $691,200 for 1,800 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 610 units are manufactured in the cell. The estimated materials costs are $160 per unit.

Provide the following journal entries for March 31. Refer to the Chart of Accounts for exact wording of account titles.

A.

Materials are purchased to produce 700 units.

B.

Conversion costs are applied to 610 units of production.

C.

595 units are completed and placed into finished goods.

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
150	Raw and In Process Inventory
151	Finished Goods Inventory
180	Land
190	Equipment
191	Accumulated Depreciation-Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customers Refunds Payable
221	Notes Payable

	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
34	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
511	Conversion Costs
521	Advertising Expense
523	Depreciation Expense-Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Journalize the entries for the transactions listed in the Instructions panel for March 31. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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