• McNally Company manufactures a nutrient, Everlife, through two manufacturing processes: blending and packaging. All materials are entered at the beginning of each process. On August 1, 2016, inventories consisted of $5,000 in Raw Materials, $0 in Work in ProcessBlending, $3,945 in Work in ProcessPackaging, and $7,500 in Finished Goods. The beginning inventory for packaging consisted of 500 units, two-fifths complete in terms of conversion costs and fully complete in terms of materials. During August, 9,000 units were started into production in blending, and the following transactions were completed:Purchased $25,000 of raw materials on account.
• Issued raw materials for production: blending $18,930 and packaging $9,140.
• Incurred labour costs of $23,770.
• Used factory labour: blending $13,320 and packaging $10,450.
• Incurred $41,500 of manufacturing overhead on account.
• Applied manufacturing overhead at the rate of $25 per machine hour. Machine hours were 900 for blending and 300 for packaging.
• Transferred 8,200 units from blending to packaging at a cost of $44,940.
• Transferred 8,600 units from packaging to Finished Goods at a cost of $67,490.
• Sold goods costing $62,000 for $90,000 on account.

Instructions

Journalize the August transactions.