Fiedel 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, 2016, inventories consisted of $26,000 in Raw Materials, $0 in Work in Process-Mixing, $250,000 in Work in Process-Packaging, and $289,000 in Finished Goods. The beginning inventory for Packaging consisted of 10,000 units that were 50% complete in terms of conversion costs and fully complete in terms of 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 labour costs of $258,900.
4. Used factory labour: mixing $182,500 and packaging $76,400.
5. Incurred $810,000 of manufacturing overhead on account.
6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 28,000 in mixing and 6,000 in packaging.
7. Transferred 45,000 units 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.