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Fiedel Company manufactures its product, Vitadrink, through two manufacturing process: mixing and packaging. All materials are entered at the beginning of each process. On
Fiedel Company manufactures its product, Vitadrink, through two manufacturing process: mixing and packaging. All materials are entered at the beginning of each process. On October 1, 2020, 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 Packing 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 of 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.
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