Fire Out Company manufactures its product, 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

ProcessMixing $0, Work in ProcessPackaging $250,000, and Finished Goods $289,000.

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 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 labor costs of $278,900.

4. Used factory labor: Mixing $182,500 and Packaging $96,400.

5. Incurred $810,000 of manufacturing overhead on account.

6. Applied manufacturing overhead on the basis of $23 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.