Lamberton Industries uses process costing. All of the companys manufacturing activities take place in a single processing department. The following information was available for the month of July.

Milton Corporation had 15,000 units of beginning inventory in its Cutting Department on May 1. The units were 100 percent complete with respect to direct materials requirements but only 80 percent complete with respect to conversion requirements. On May 31, the company had 12,000 units of inventory remaining in its Cutting Department. These units were 100 percent complete with respect to their direct materials requirements but only 30 percent complete with respect to conversion. The departments direct materials cost in May totaled $1,000,000, or $40 per equivalent unit consumed. Its conversion costs in May totaled $2,200,000, or $50 per equivalent unit. Determine how many units were started and completed in Miltons Cutting Department during May. Direct Materials= Conversion=

Partially completed units in Julys beginning and ending work in process inventories were considered immaterial and were assigned no dollar value. During July, 40,000 units were completed, of which 35,000 were sold on account at $12 per unit.

a. Prepare a journal entry to summarize the total manufacturing costs applied to production in July.

b. Prepare the journal entry to transfer 40,000 completed units from work in process to the finished goods warehouse in July.

c. Prepare the journal entries to record the sale of 35,000 units manufactured during the period and the related cost of goods sold.