Dyzor is a lean manufacturer of wireless sound systems. Its wireless speaker value stream budgets $270,000 of conversion costs and 500 production hours for the next quarter. The company can produce three speaker systems perproduction hour. Each unit requires materials costs of $44. Assume the company produces and sells 400 units in the next month at a price of $320 each. Prepare journal entries to record each of the following.
1. Purchase of raw materials on credit.
2. Applied conversion costs to production.
3. Sold 400 units on credit.
4. Record cost of goods sold.
