Question
the top reads: Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials are entered at the beginning of
the top reads:
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, 2017, inventories consisted of Raw Materials $26,000, Work in ProcessMixing $0, Work in ProcessPackaging $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 units were started into production in the Mixing Department and the following transactions were completed.
1. | Purchased $304,800 of raw materials on account. | |
2. | Issued raw materials for production: Mixing $211,800 and Packaging $49,900. | |
3. | Incurred labor costs of $288,100. | |
4. | Used factory labor: Mixing $187,000 and Packaging $101,100. | |
5. | Incurred $917,100 of manufacturing overhead on account. | |
6. | Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in Packaging. | |
7. | Transferred 46,700 units from Mixing to Packaging at a cost of $982,800. | |
8. | Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319,000. | |
9. | Sold goods costing $1,645,000 for $2,505,000 on account. |
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