Problem 16-01A
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, 2020, inventories consisted of Raw Materials $26,700, Work in Process—Mixing $0, Work in Process—Packaging $251,500, and Finished Goods $294,500. The beginning inventory for Packaging consisted of 12,100 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 53,900 units were started into production in the Mixing Department and the following transactions were completed.
1. | Purchased $302,600 of raw materials on account. | |
2. | Issued raw materials for production: Mixing $212,700 and Packaging $48,600. | |
3. | Incurred labor costs of $284,500. | |
4. | Used factory labor: Mixing $184,900 and Packaging $99,600. | |
5. | Incurred $1,058,000 of manufacturing overhead on account. | |
6. | Applied manufacturing overhead on the basis of $25 per machine hour. Machine hours were 32,000 in Mixing and 8,900 in Packaging. | |
7. | Transferred 46,600 units from Mixing to Packaging at a cost of $980,600. | |
8. | Transferred 56,900 units from Packaging to Finished Goods at a cost of $1,317,000. | |
9. | Sold goods costing $1,641,000 for $2,503,000 on account. |
Journalize the October transactions. (Credit account
titles are automatically indented when amount is entered. Do not
indent manually.)
No. |
Account Titles and Explanation |
Debit |
Credit |
---|---|---|---|
1. |
enter an account title for the first transaction | enter a debit amount | enter a credit amount |
enter an account title for the first transaction | enter a debit amount | enter a credit amount | |
2. |
enter an account title for the second transaction | enter a debit amount | enter a credit amount |
enter an account title for the second transaction | enter a debit amount | enter a credit amount | |
enter an account title for the second transaction | enter a debit amount | enter a credit amount | |
3. |
enter an account title for the third transaction | enter a debit amount | enter a credit amount |
enter an account title for the third transaction | enter a debit amount | enter a credit amount | |
4. |
enter an account title for the fourth transaction | enter a debit amount | enter a credit amount |
enter an account title for the fourth transaction | enter a debit amount | enter a credit amount | |
enter an account title for the fourth transaction | enter a debit amount | enter a credit amount | |
5. |
enter an account title for the fifth transaction | enter a debit amount | enter a credit amount |
enter an account title for the fifth transaction | enter a debit amount | enter a credit amount | |
6. |
enter an account title for the sixth transaction | enter a debit amount | enter a credit amount |
enter an account title for the sixth transaction | enter a debit amount | enter a credit amount | |
enter an account title for the sixth transaction | enter a debit amount | enter a credit amount | |
7. |
enter an account title for the seventh transaction | enter a debit amount | enter a credit amount |
enter an account title for the seventh transaction | enter a debit amount | enter a credit amount | |
8. |
enter an account title for the eighth transaction | enter a debit amount | enter a credit amount |
enter an account title for the eighth transaction | enter a debit amount | enter a credit amount | |
9. |
enter an account title for the ninth transaction to record the sale | enter a debit amount | enter a credit amount |
enter an account title for the ninth transaction to record the sale | enter a debit amount | enter a credit amount | |
(To record the sale) | |||
enter an account title for the ninth transaction to record the cost of goods sold | enter a debit amount | enter a credit amount | |
enter an account title for the ninth transaction to record the cost of goods sold | enter a debit amount | enter a credit amount | |
(To record the cost of goods sold) |
Account Titles and Explanation | Debit | Credit | ||
1 | Raw materials inventory | 302600 | ||
Accounts Payable | 302600 | |||
2 | Work in process-Mixing | 212700 | ||
Work in process-Packaging | 48600 | |||
Raw materials inventory | 261300 | |||
3 | Factory labor | 284500 | ||
Wages payable | 284500 | |||
4 | Work in process-Mixing | 184900 | ||
Work in process-Packaging | 99600 | |||
Factory labor | 284500 | |||
5 | Manufacturing overhead | 1058000 | ||
Accounts Payable | 1058000 | |||
6 | Work in process-Mixing | 800000 | =32000*25 | |
Work in process-Packaging | 222500 | =8900*25 | ||
Manufacturing overhead | 1022500 | |||
7 | Work in process-Packaging | 980600 | ||
Work in process-Mixing | 980600 | |||
8 | Finished goods inventory | 1317000 | ||
Work in process-Packaging | 1317000 | |||
9 | Accounts Receivable | 2503000 | ||
Sales revenue | 2503000 | |||
(To record the sale) | ||||
Cost of goods sold | 1641000 | |||
Finished goods inventory | 1641000 | |||
(To record the cost of goods sold) |
Problem 16-01A Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging....
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, 2020, inventories consisted of Raw Materials $27,100, Work in Process—Mixing $0, Work in Process—Packaging $253,000, and Finished Goods $292,500. The beginning inventory for Packaging consisted of 12,800 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 53,100 units were started into production in the Mixing...
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, 2020, inventories consisted of Raw Materials $27,000. Work in Process-Mixing $0, Work in Process-Packaging $253,200, and Finished Goods $291,700. The beginning inventory for Packaging consisted of 14,100 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 51,900 units were started into production in the Mixing...
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