Kwanika Co. operates in a lean manufacturing environment. During its first year of operations, Kwanika budgeted for 40,000 hours in the production of 100,000 units in its Cell X-22. Materials costs were $7.00 per unit. Cell X-22 conversion costs were budgeted for the year as follows: Direct and indirect labor Machine depreciation $900,000 125,000 Maintenance and supplies 375,000 Utilities Total 225,000 $1,625,000 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. a. Journalize the materials purchases. b. Journalize the application of conversion costs. c. Journalize the transfer from work in process to finished goods.