Fast-Flow Paints produces mixer base paint through a twostage process, Mixing and Packaging. The following events depict the movement of value into and out of production. Journalize each event if appropriate; if not, provide a short narrative reason as to why you chose not to journalize the action. Nelson, the production manager, accepts an order to continue processing the current run of mixer base paint.

(a)	Materials worth $27,000.00 are withdrawn from raw materials inventory. Of this amount, $25,500.00 will be issued to the Mixing Department, and the balance will be issued to the Maintenance Department to be used on production line machines.
(b)	Nelson calculates that labor for the period is $12,500.00. Of this amount, $1,750.00 is for maintenance and indirect labor. The remainder is directly associated with mixing.
(c)	Nelson, who is paid a salary but earns about $35.00 per hour, spends one hour inspecting the production line.
(d)	The manufacturing overhead drivers for mixing are hours of mixer time at $575.00 per hour, and material movements from materials at $125.00 per movement. An inspection of the machine timers reveals that a total of eight hours has been consumed in making this product. An inspection of "stocking orders" indicates that only one material movement was utilized to load the raw materials. (Note: All values have been journalized to Factory Overhead. You need only apply them to the production run.)
(e)	Within Fast-Flow, items are transferred between departments at a standard cost. This production run has created 4,015 gallons of mixer base paint. This paint is transferred to Packaging at a standard cost of $10.05 per gallon. (Round calculation to the nearest whole dollar.)
(f)	Packaging draws $755.00 of materials for packaging of this production run.
(g)	Packaging documents that 12 hours of direct labor at $10.25 per hour were consumed in the packaging of this production run.
(h)	Packaging uses a cost driver of direct labor hours to allocate manufacturing overhead at the rate of $25.00 per hour.
(i)	Packaging transfers 4,015 gallons of packaged goods to Finished Goods Inventory at a standard cost of $10.34 per gallon. (Round calculation to the nearest whole dollar.)

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
122	Supplies
123	Prepaid Insurance
130	Materials
132	Work in Process-Mixing
133	Work in Process-Packaging
134	Factory Overhead - Mixing
135	Factory Overhead - Packaging
136	Finished Goods Inventory
181	Land
191	Machinery

	LIABILITIES
210	Accounts Payable
231	Notes Payable
232	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Insurance Expense
532	Utilities Expense
533	Supplies Expense
560	Depreciation Expense-Machinery
590	Miscellaneous Expense
710	Interest Expense

Prepare the journal entries for each event depict the movement of value into and out of production on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round answers to the nearest dollar.

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JOURNAL

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c. Nelson, who is paid a salary but earns about $35.00 per hour, spends one hour inspecting the production line.

Nelson's inspection of the assembly line is chargeable to production. Since he is the manager of a production unit, it will be incorporated in the cost of production through the allocation of overhead.