Question

*Problem 3-1A (Video) 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.

Answer 1

В A Date 1 1 2 Credit($) C Debit($) 302600 Particulars Raw Materials inventory Accounts Payable 302600 Work in Process- Mixing Work in Process- Packaging Raw Materials inventory 2127001 48600 261300 3 284500 Factory Labor I Wages payable 284500 Work in Process- Mixing Work in Process- Packaging Factory Labor 184900 996001 284500 10580001 Manufacturing overhead Accounts Payable 1058000 Work in Process- Mixing (32000*25) Work in Process- Packaging (8900*25). Manufacturing overhead 800000 222500 1022500

980600 Work in Process- Packaging Work in Process- Mixing 980600 8 1317000 Finished goods inventory Work in Process- Packaging 1317000 2503000 Accounts Receivable Sales revenue 25030001 1641000 Cost of goods sold Finished goods inventory 1641000