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Lean Accounting

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.

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