The Carlrin Brewing Company produces beer which it sells worldwide. The company uses a process cost system to track its costs in its two departments: Production, which consists of all of the processes necessary to produce the beer, and Packaging, which packages the beer into cans, bottles and kegs.

Journalize the following transactions, which took place during the month of October, when the company was operating at near full capacity:

October

$180,000 of raw materials was purchased on account.

Material Requisition Slips show the below raw materials were obtained by the two departments from the stockroom:

Direct materials:

Production $72,000

Packaging 28,000

Indirect Materials:

Production $2,000

Packaging 3,000

Time Cards indicate the following labor costs were incurred:

Production $34,000

Packaging 12,000

Incurred $63,000 of manufacturing overhead costs on account.

Time Tickets indicate the following:

Direct Labor:

Production $31,000

Packaging 9,000

Indirect Labor:

Production $1,200

Packaging 800

Manufacturing overhead is applied on the basis of machine hours in both departments. The amount of machine hours (mh) used in each department is as follows:

Production 120 mh @ $20 per mh

Packaging 40 mh @ $12 per mh

Beer products costing $102,000 were completed in the Production Department and transferred to the Packaging Department.

Beer products costing $130,000 were completed in the Packaging Department and sent to Finished Goods.

An order of finished goods costing $110,000 was sold on account for $200,000.

General Journal

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Date	Account Titles & Explanation	Ref.	Debits	Credits

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