The annual budgeted conversion costs for a lean cell are $$180,000$ for $2,000$ production hours. Each unit produced by the cell requires $18$ minutes of cell process time. During the month, $550$ units are manufactured in the cell. The estimated materials costs are $$32$ per unit $-$

a$.$ Materials are purchased to produce $600$ units.

b$.$ Conversion costs are applied to $550$ units of production.

c$.$ The cell completes $500$ units, which are placed into finished goods.

Journalize the above entries for the month. Refer to the Chart of Accounts for exact wording of account titles.

Instructions

Journal

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

$\backslash$table$[[,,,$PAGE $10,],[$JOURNAL$,],[,$DATE,DESCRIPTION,,POST. REF.,DEBIT,CREDIT,$],[1,,,,,,,],[2,,,,,,,],[3,,,,,,,],[4,,,,,,,]]$

PAGE $10$

JOURNAL

DATE

$\backslash$table$[[$DESCRIPTION$,$POST. REF.,DEBIT,CREDIT$],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

General Ledger

$\backslash$table$[[$ASSETS$,$REVENUE$],[110$ Cash,$410$ Sales$],[120$ Accounts Receivable,$],[125$ Notes Receivable,EXPENSES$],[140$ Office Supplies,$510$ Cost of Goods Sold$],[141$ Store Supplies,$511$ Conversion Costs$],[142$ Prepaid Insurance,$521$ Advertising Expense$],[150$ Raw and In Process Inventory,$523$ Depreciation Expense$-$Equipment$],[151$ Finished Goods Inventory,$526$ Salaries Expense$],[180$ Land,$531$ Rent Expense$],[190$ Equipment,$533$ Insurance Expense$],[191$ Accumulated Depreciation$-$Equipment,$\backslash$table$[[534$ Store Supplies Expense$],[535$ Office Supplies Expense$]]]]$

Chart of Accounts

$191$ 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

$534$ Store Supplies Expense

$535$ Office Supplies Expense

$536$ Credit Card Expense

$539$ Miscellaneous Expense

$710$ Interest Expense