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Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. The following transactions were completed during October, the company's first month
Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. The following transactions were completed during October, the company's first month of operations. 1. 2. 3. 4. 5. 6. Purchased $304,400 of raw materials. Issued raw materials for production: Mixing $212,500 and Packaging $49,000. Incurred labor costs of $284,300. Used factory labor: Mixing $186,500 and Packaging $97,800. Incurred $956,400 of manufacturing overhead. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 32,700 in Mixing and 9,000 in Packaging. Transferred 48,800 units from Mixing to Packaging at a cost of $980,800. Transferred 57,000 units from Packaging to Finished Goods at a cost of $1,320,000. Sold goods costing $1,215,000. 8. 9. Record the October transactions using the following format. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) WORE MANUFACTURING COSTS Factory Labor Raw Materials Inventory Manufacturing Overhead Mixing 1. $ $ $ $ 2. 3. 4. 5. 6. 7. 8. 9. WORK IN PROCESS Packaging FINISHED GOODS INVENTORY COST OF GOODS SOLD $ $ $ $ $
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