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In: Accounting

Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials...

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 $26,100, Work in Process—Mixing $0, Work in Process—Packaging $253,100, and Finished Goods $292,600. The beginning inventory for Packaging consisted of 14,100 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 51,000 units were started into production in the Mixing Department and the following transactions were completed. 1. Purchased $303,000 of raw materials on account. 2. Issued raw materials for production: Mixing $211,400 and Packaging $47,400. 3. Incurred labor costs of $285,200. 4. Used factory labor: Mixing $184,800 and Packaging $100,400. 5. Incurred $1,036,000 of manufacturing overhead on account. 6. Applied manufacturing overhead on the basis of $25 per machine hour. Machine hours were 32,300 in Mixing and 7,900 in Packaging. 7. Transferred 49,300 units from Mixing to Packaging at a cost of $982,900. 8. Transferred 54,000 units from Packaging to Finished Goods at a cost of $1,320,000. 9. Sold goods costing $1,643,000 for $2,502,000 on account. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. 9. (To record the sale) (To record the cost of goods sold)?

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Expert Solution

No. Accounts titles and Explanations Debit (in $) Credit (in $)
1 Raw Materials inventory $ 303,000
            Accounts Payable $ 303,000
(To record the inventory purchased on account)
2 Work in Process - Mixing $ 211,400
Work in Process - Packaging $ 47,400
             Raw Materials inventory $ 258,800
(To record the issue of Raw material )
3 Wages expense (or )Factory Labor $ 285,200
                Wages Payable $ 285,200
(To record the Wages expense )
4 Work in Process -Mixing $ 184,800
Work in Process -Packaging $ 100,400
             Factory Labor $ 285,200
(To record the Factory Labor used in Production)
5 Manufacturing Overhead $ 1,036,000
                 Accounts Payable $ 1,036,000
(To record the manufcaturing overhead incurred)
6 Work in Process -Mixing
(32,300 x $ 25)
$ 807,500
Work in Process -Packaging
( 7,900 x $ 25)
$ 197,500
                    Factory Overhead $ 1,005,000
(To record the applied manufacturing overhead)
7 Work in Process -Packaging $ 982,900
             Work in Process -Mixing $ 982,900
(To record the goods transferred from mixing Department )
8 Finished Goods $ 1,320,000
             Work in Process -Packaging $ 1,320,000
(To record the goods transferred to finished goods)
9 Accounts Receivable $ 2,502,000
        Sales $ 2,502,000
(To record the sales on account )
Cost of Good sold $ 1,643,000
            Finished Goods $ 1,643,000
(To record the Cost of Good sold on account )

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