Pepsi Company manufactures a nutrient, Ever life, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2002, inventories consisted of Raw Materials $5,000, Work in Process—Blending $0, Work in Process —Packaging $3,945, and Finished Goods $7,500.

The beginning inventory for Packaging consisted of 500 units, two-fifths complete as to conversion costs and fully complete as to materials. During August, 9,000 units were started into production in Blending, and the following transactions were completed.

1. Purchased $25,000 of raw materials on account.
2. Issued raw materials for production: Blending $16,930 and Packaging $7,140.
3. Incurred labor costs of $18,770.
4. Used factory labor: Blending $13,320 and Packaging $5,450.
5. Incurred $41,500 of manufacturing overhead on account.
6. Applied manufacturing overhead at the rate of $35 per machine hour. Machine hours were Blending 900 and Packaging 300.
7. Transferred 8,200 units from Blending to Packaging at a cost of $54,940.
8. Transferred 8,600 units from Packaging to Finished Goods at a cost of $74,490.
9. Sold goods costing $62,000 for $90,000 on account.

Instructions
Journalize the August transactions.