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, 2020, inventories consisted of Raw Materials $27,300, Work in ProcessMixing $0, Work in ProcessPackaging $251,800, and Finished Goods $293,600 The beginning inventory for Packaging consisted of 13,500 units that were 50 complete as to conversion costs and fully complete as to materials During October, 51,900 units were started into production in the Mixing Department and the following transactions were completed 1 Purchased $301,700 of raw materials on account 2 Issued raw materials for production Mixing $213,000 and Packaging $49,600 3 Incurred labor costs of $286,600 4 Used factory labor Mixing $185,500 and Packaging $101,100 5 Incurred $901,500 of manufacturing overhead on account 6 Applied manufacturing overhead on the basis of $22 per machine hour Machine hours were 32,000 in Mixing and 7,500 in Packaging 7 Transferred 49,700 units from Mixing to Packaging at a cost of $983,700 8 Transferred 56,900 units from Packaging to Finished Goods at a cost of $1,320,000 9 Sold goods costing $1,644,000 for $2,502,000 on account Journalize the October transactions (Credit account titles are automatically indented when amount is entered Do not indent manually ) No Account Titles and Explanation Debit Credit 1 Raw Materials Inventory Accounts Payable 2 Work in Process Mixing Work in Process Packaging Raw Materials Inventory 3 DODONTOITURE MOORE Wages Payable 4 Work in Process Mixing Work in Process Packaging 5 Manufacturing Overhead Accounts Payable 6 Work in Process Mixing Work in Process Packaging Manufacturing Overhead 7 Work in Process Packaging Work in Process Mixing 8 Finished Goods Inventory I MINUTITE Work in Process Packaging 9 Accounts Receivable Sales Revenue (To record the sale) Cost of Goods Sold Finished Goods Inventory (To record the cost of goods sold)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 17, 2024

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

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, 2020, inventories consisted of Raw Materials $27,300, Work in ProcessMixing $0, Work in ProcessPackaging $251,800, and Finished Goods $293,600. The beginning inventory for Packaging consisted of 13,500 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 51,900 units were started into production in the Mixing Department and the following transactions were completed.

1.		Purchased $301,700 of raw materials on account.
2.		Issued raw materials for production: Mixing $213,000 and Packaging $49,600.
3.		Incurred labor costs of $286,600.
4.		Used factory labor: Mixing $185,500 and Packaging $101,100.
5.		Incurred $901,500 of manufacturing overhead on account.
6.		Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 32,000 in Mixing and 7,500 in Packaging.
7.		Transferred 49,700 units from Mixing to Packaging at a cost of $983,700.
8.		Transferred 56,900 units from Packaging to Finished Goods at a cost of $1,320,000.
9.		Sold goods costing $1,644,000 for $2,502,000 on account.

Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No. Account Titles and Explanation Debit Credit 1. Raw Materials Inventory Accounts Payable 2. Work in Process - Mixing Work in Process - Packaging Raw Materials Inventory 3. DODONTOITURE MOORE Wages Payable 4. Work in Process - Mixing Work in Process - Packaging 5. Manufacturing Overhead Accounts Payable 6. Work in Process - Mixing Work in Process - Packaging Manufacturing Overhead 7. Work in Process - Packaging Work in Process - Mixing 8. Finished Goods Inventory I MINUTITE Work in Process - Packaging 9. Accounts Receivable Sales Revenue (To record the sale) Cost of Goods Sold Finished Goods Inventory (To record the cost of goods sold)