Question

PROBLEMS: SET A P16-1A Fire Out Company manufactures its product, Vitadrink, through two manufactur ing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October 1, 2017, inventories consisted of Raw Materials $26,000, Work in Process Mixing $0, Work in Process Packaging $250,000, and Finished Goods $289.000. The beginning inventory for Packaging consisted of 10,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 50,000 units were started into production in the Mixing Department and the following transactions were completed. 1. Purchased $300,000 of raw materials on account. 2. Issued raw materials for production: Mixing $210,000 and Packaging $45,000. 3. Incurred labor costs $278,900. 4. Used factory labor mixias $182,500 and Packaging $96,400. 5. Incurred $810.000 f anufacturing overhead on account. 6. Applied manufacing werhead on the basis of $23 per machine hour. Machine hours were 28,000 in Ning and 5,000 in Packaging. 7. Transferred 45.000 its from Mixing to Packaging at a cost of $979,000. 8. Transferred 53.000 units from Packaging to Finished Goods at a cost of $1,315,000. 9. Sold goods costing $1,604,000 for $2,500,000 on account. Instructions Journalize the October transactions.

Answer 1

Journal entry

No	General Journal	Debit	Credit
1	Raw material	300000
	Account payable		300000
2	Work in process-Mixing	210000
	Work in process-Packaging	45000
	Raw material		255000
3	Factory labor	278900
	Wages payable		278900
4	Work in process-Mixing	182500
	Work in process-Packaging	96400
	Factory labor		278900
5	Manufacturing overhead	810000
	Account payable		810000
6	Work in process-Mixing (28000*23)	644000
	Work in process-Packaging	138000
	Manufacturing overhead		782000
7	Work in process-Packaging	979000
	Work in process-mixing		979000
8	Finished goods	1315000
	Work in process-packaging		1315000
9	Account receivable	2500000
	Sales revenue		2500000
	Cost of goods sold	1604000
	Finished goods		1604000