The annual budgeted conversion costs for a lean cell are $180,000 for 2,000 production hours. Each unit produced by the cell requires 18 minutes of cell process time. During the month, 550 units are manufactured in the cell. The estimated materials costs are $32 per unit. Journalize the following entries for the month:

A. Materials are purchased to produce 600 units.

B. Conversion costs are applied to 550 units of production.

C. The cell completes 500 units, which are placed into finished goods.