The annual budgeted conversion costs for a lean cell are $144,000 for 1,800 production hours. Each unit produced by the cell requires 9 minutes of cell process time. During the month, 1,000 units are manufactured in the cell. The estimated materials costs are $65 per unit. Provide the following journal entries:
a. Materials are purchased to produce 1,050 units.
b. Conversion costs are applied to 1,000 units of production.
c. 980 units are completed and placed into finished goods.