Journalize transactions: Wilbury Company manufactures a nutrient, Everlife, thro
ID: 2421169 • Letter: J
Question
Journalize transactions: Wilbury Company manufactures a nutrient, Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2014, inventories consisted of Raw Materials $5,000, Work in Process— Blending $0, Work in Process—Packaging $3,945, and Finished Goods $7,500. The beginning inventory for Packaging consisted of 500 units, two-fi fths complete as to conversion costs and fully complete as to materials. During August, 9,000 units were started into production in Blending, and the following transactions were completed.
1. Purchased $25,000 of raw materials on account.
2. Issued raw materials for production: Blending $18,930 and Packaging $9,140.
3. Incurred labor costs of $25,770.
4. Used factory labor: Blending $15,320 and Packaging $10,450.
5. Incurred $36,500 of manufacturing overhead on account.
6. Applied manufacturing overhead at the rate of $28 per machine hour. Machine hours were Blending 900 and Packaging 300.
7. Transferred 8,200 units from Blending to Packaging at a cost of $44,940.
8. Transferred 8,600 units from Packaging to Finished Goods at a cost of $67,490.
9. Sold goods costing $62,000 for $90,000 on account.
Explanation / Answer
Journal Entries
Description Debit Credit Raw materials $25,000 To Accounts payable $25,000 Work in progress- Blending 18,930 WIP - Packaging 9,140 To Raw materials inventory $28,070 Factory and wages $25,770 To Factory and wages payable $25,770 WIP $25,770 To Factory and wages - Blending $15,320 To Factory and wages - Packaging 10,450 Manufacturing overhead $36,500 To Accounts payable $36,500 WIP- Blending 25,200 WIP- Pacakaing 8,400 To Manufacturing overhead $33,600 WIP-Packaging $49,940 WIP- Blending $49,940 Finished goods $67,490 To WIP $67,490 Cost of goods sold $62,000 To Finsished goods $62,000Related Questions
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