Suza IncIs a Lean Manufacturer of Snow Blowers

Essay

Suza Inc.is a lean manufacturer of snow blowers.Each snow blower requires $300 of raw materials.Estimated conversion costs to produce 4,000 units in this year are $600,000.During the first six months of this year Suza produced 300 snow blowers and sold 280.Each snow blower is sold for $900.
Required
1.Compute the conversion rate per snow blower.
2.Prepare journal entries to record (a)the purchase of raw materials on credit,(b)applied conversion costs to production,(c)sale of snow blowers on credit,and (d)cost of goods sold and finished goods inventory.