Kwanika Co$.$ operates in a lean manufacturing environment. During its first year of operations, Kwanika budgeted for $50,000$ hours in the production of $100,000$ units in its Cell X$-22.$ Materials costs were $$8\mathrm{.}00$ per unit. Cell X$-22$ conversion costs were budgeted for the year as follows:

Direct and indirect labor

$ $900,000$

Machine depreciation

$125,000$

Maintenance and supplies

$395,000$

Utilities

$245,000$

Total

$$1,665,000$

$$

During January, materials for $8,400$ units were purchased on account. There were $8,200$ units manufactured and $8,000$ were sold and shipped to customers for $$35$ each. Conversion costs are applied based on units of production. Journalize $($a$)$ the materials purchases, $($b$)$ the application of conversion costs, $($c$)$ the transfer from work in process to finished goods, and $($d$)$ the sales $($all made on account$)$ and associated cost of goods sold for the month of January.

$$