Question

1. Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materia are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,800, Work in Proce --Mixing $0, Work in Process-Packaging $254.000, and Finished Goods $291,100. The beginning inventory for Packaging consisted of 11,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,300 units were started into production in the Mixing Department and the following transactions were completed. Purchased $302,000 of raw materials on account. 2. Issued raw materials for production: Mixing $214,100 and Packaging $50,000. 3. Incurred labor costs of $284,200. Used factory labor: Mixing $185,800 and Packaging $98,400. Incurred $889,800 of manufacturing overhead on account Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 29,000 in Mixing and 7.200 in Packaging Transferred 46,700 units from Mixing to Packaging at a cost of $980,000, Transferred 56,300 units from Packaging to Finished Goods at a cost of $1,319,000 Sold goods costing $1,643,000 for $2,502,000 on account. 14 5. 6. 7. 8. 9. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually)

Answer 1

Credit ($ Debit ($) $ 3,02,000 $ 3,02,000 $ $ 2,14,100 50,000 $ 2,64,100 $ 2,84,200 $ 2,84,200 $ $ 1,85,800 98,400 $ 2,84,200 Preparation of Journal Entries for October No. Account titles and explanation Raw materials inventory Accounts payable (To record raw materials inventory purchased on account) 2 Work in process- Mixing Work in process- Packaging Raw materials inventory (To record raw materials used in production) 3 Factory labor Wages payable (To record labor costs incurred) 4 Work in process- Mixing Work in process- Packaging Factory labor (To record factory labor used) 5 Manufacturing overhead Accounts payable (To record manufacturing overhead incurred) 6 Work in process- Mixing (29000*$24) Work in process- Packaging (7200*$24) Manufacturing overhead (To record manufacturing overhead applied) 7 Work in process- Packaging Work in process- Mixing (To record transferred units from mixing to packaging) 8 Finished goods Work in process- Packaging (To record transferred units from packaging to finished goods) 9 Accounts receivable Sales (To record the sale) $ 8,89,800 $ 8,89,800 $ $ 6,96,000 1,72,800 $ 8,68,800 $ 9,80,000 $ 9,80,000 $ 13,19,000 $ 13,19,000 $ 25,02,000 $ 25,02,000 $ 16,43,000 Cost of goods sold Finished goods (To record the cost of goods sold) $ 16,43,000 * Kindly Comment down for any clarifications/ queries and please upvote.