The 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. Material costs were $7 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 375,000 Utilities 225,000 Total $1,625,000 During January, material for 8,400 units was purchased on account. There were 8,200 units manufactured and 8,000 were sold shipped to customers for $35 each. Required: Journalize: (a) the material purchases; (b) the application of conversion costs; (c) the transfer from work in process to finished goods; and (d) the sales (were made on account) and associated cost of goods sold for the month of January. Round cost per unit answer to the nearest cent. Refer to the Chart of Accounts for exact wording of account titles.