Use lean accounting to prepare journal entries for the following transactions. 1. Purchased $22,500 of raw materials on credit. 2. Applied conversion costs of $67,500. 3. Incurred actual conversion costs of $67,500. Hint: Credit “Various Accounts.” 4. Sold $120,000 of goods on credit. 5. Recorded cost of goods sold of $90,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Use lean accounting to prepare journal entries for the following transactions.
1. Purchased $22,500 of raw materials on credit.
2. Applied conversion costs of $67,500.
3. Incurred actual conversion costs of $67,500. Hint: Credit “Various Accounts.”
4. Sold $120,000 of goods on credit.
5. Recorded cost of goods sold of $90,000.

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