Question

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 Department and the following transactions were completed.

1.		Purchased $301,400 of raw materials on account.
2.		Issued raw materials for production: Mixing $213,500 and Packaging $49,400.
3.		Incurred labor costs of $283,900.
4.		Used factory labor: Mixing $185,200 and Packaging $98,700.
5.		Incurred $970,500 of manufacturing overhead on account.
6.		Applied manufacturing overhead on the basis of $25 per machine hour. Machine hours were 30,100 in Mixing and 7,900 in Packaging.
7.		Transferred 47,100 units from Mixing to Packaging at a cost of $983,300.
8.		Transferred 57,600 units from Packaging to Finished Goods at a cost of $1,316,000.
9.		Sold goods costing $1,643,000 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)

Answer 1

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.	Raw material	301400
	Account payable		301400
2.	Work in process-Mixing	213500
	Work in process-Packaging	49400
	Raw material		262900
3.	Factory labor	283900
	Wages payable		283900
4.	Work in process-Mixing	185200
	work in process-Packaging	98700
	Factory labor		283900
5.	Manufacturing overhead	970500
	Account payable		970500
6.	Work in process-Mixing	752500
	Work in process-Packaging	197500
	Manufacturing overhead		950000
7.	Work in process-Packaging	983300
	Work in process-Mixing		983300
8.	Finished goods	1316000
	Work in process-Packaging		1316000
9.	Account receivable	2503000
	Sales revenue		2503000
	(To record the sale)
	Cost of goods sold	1643000
	Finished goods		1643000
	(To record the cost of goods sold)