Question
Sunland Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of each process. On October
Sunland 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 of13,500units that were 50% completeas to conversion costs and fully completeas to materials. During October,51,900units were started into production in the Mixing Department and the following transactions were completed.
1.
Purchased $301,700of raw materials on account.2.
Issued raw materials for production: Mixing $213,000and Packaging $49,600.3.
Incurred labor costs of $286,600.4.
Used factory labor: Mixing $185,500and Packaging $101,100.5.
Incurred $901,500of manufacturing overhead on account.6.
Applied manufacturing overhead on the basis of $22per machine hour. Machine hours were32,000in Mixing and7,500in Packaging.7.
Transferred49,700units from Mixing to Packaging at a cost of $983,700.8.
Transferred56,900units from Packaging to Finished Goods at a cost of $1,320,000.9.
Sold goods costing $1,644,000for $2,502,000on account.
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