Lean Accounting

The annual budgeted conversion costs for a lean cell are $175,500 for 3,000 production hours. Each unit produced by the cell requires 20 minutes of cell processtime. During the month, 1,000 units are manufactured in the cell. The estimated materials cost is $55 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. 950 units are completed and placed into finished goods.

a.
b.
c.