Problem 3-1A Fire Out Company manufactures its product, Vitadrink, through two m

Question

Problem 3-1A Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2017, inventories consisted of Raw Materials $27,100, Work in Process—Mixing $0, Work in Process—Packaging $251,000, and Finished Goods $292,700. The beginning inventory for Packaging consisted of 13,400 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 54,700 units were started into production in the Mixing Department and the following transactions were completed. 1. Purchased $303,000 of raw materials on account. 2. Issued raw materials for production: Mixing $213,500 and Packaging $47,500. 3. Incurred labor costs of $283,800. 4. Used factory labor: Mixing $184,900 and Packaging $98,900. 5. Incurred $959,300 of manufacturing overhead on account. 6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 29,800 in Mixing and 8,900 in Packaging. 7. Transferred 49,500 units from Mixing to Packaging at a cost of $982,900. 8. Transferred 55,500 units from Packaging to Finished Goods at a cost of $1,320,000. 9. Sold goods costing $1,645,000 for $2,502,000 on account. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

Accounts Debit Credit raw material inventory       303,000 accounts payable       303,000                   -   work in process inventory- Mixing       213,500                   -   work in process inventory- Packaging          47,500 raw material inventory       261,000                   -   Factory payroll       283,800                   -   Wages payable       283,800                   -   work in process Labor- Mixing       184,900                   -   work in process Labor Packaging          98,900 Factory payroll       283,800                   -   Manufacturing overhead       959,300                   -   overhead payable       959,300                   -   work in process Mixing       715,200                   -   work in process Packaging       213,600 Manufacturing overhead       928,800                   -   work in process Labor Packaging       982,900                   -   work in process Labor- Mixing       982,900                   -   Finished goods    1,320,000                   -   work in process Labor Packaging    1,320,000                   -   Accounts receivable    2,502,000                   -   Sales    2,502,000                   -   Cost of goods sold    1,645,000                   -   Finished goods    1,645,000

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