Problem 3-1A (Video)

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 $27,600, Work in ProcessMixing $0, Work in ProcessPackaging $253,900, and Finished Goods $291,300. The beginning inventory for Packaging consisted of 11,100 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 51,400 units were started into production in the Mixing Department and the following transactions were completed.

1.		Purchased $301,800 of raw materials on account.
2.		Issued raw materials for production: Mixing $214,100 and Packaging $46,400.
3.		Incurred labor costs of $285,300.
4.		Used factory labor: Mixing $186,500 and Packaging $98,800.
5.		Incurred $873,000 of manufacturing overhead on account.
6.		Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 29,400 in Mixing and 7,100 in Packaging.
7.		Transferred 48,500 units from Mixing to Packaging at a cost of $982,300.
8.		Transferred 57,400 units from Packaging to Finished Goods at a cost of $1,317,000.
9.		Sold goods costing $1,645,000 for $2,502,000 on account.

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

1. 2. 3. 4. 5. 6. 7. 8. 9. (To record the sale) (To record the cost of goods sold)