The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units.

Manufacturing Costs Production Data Beginning work in process $ 32,175 Beginning work in process 15,000 units, Costs transferred in 135,000 10% complete Materials 57,000 Units transferred out 54,000 Labor 35,100 Units transferred in 64,000 Overhead 68,400 Ending work in process 25,000, 20% complete Instructions Prepare a production cost report for the Welding Department for the month of February.

Transferred-in costs are considered materials costs. 3. Incurred labor costs of $258,900. 4. Used factory labor: 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.