17-1

Fire Out Company manufactures its products, Vitadrink, through two manufacturing 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 $298,000. 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 complete.

Purchased $300,000 of raw materials of account

Issued raw materials for production: Mixing $210,000 and Packaging $45,000

Incurred labor costs of $278,900

Used factory labor: Mixing $182,500 and Packaging $45,000

Incurred $810,000 of manufacturing overhead on account

Applied manufacturing overhead on the basis of $23 per machine hour. Machine Hours were 28,000 in Mixing and 6,000 in Packaging

Transferred 45,000 units from Mixing to Packaging at a cost of $979,000

Transferred 53,000 units from packaging to finished goods at a cost of $1,315,000

Sold goods costing $1,604,000 for $2,500,000 on account

Journalize Octobter Transactions