The Kwanika Co

Essay

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:
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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.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.