Question

3. Crane 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 $26,000, Work in Process—Mixing $0, Work in Process—Packaging $251,000, and Finished Goods $290,000. The beginning inventory for Packaging consisted of 11,000 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 $301,000 of raw materials on account.

2. Issued raw materials for production: Mixing $211,000 and Packaging $46,000.

3. Incurred labor costs of $280,900.

4. Used factory labor: Mixing $183,500 and Packaging $97,400.

5. Incurred $812,000 of manufacturing overhead on account.

6. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 29,000 in Mixing and 7,000 in Packaging.

7. Transferred 46,000 units from Mixing to Packaging at a cost of $980,000.

8. Transferred 54,000 units from Packaging to Finished Goods at a cost of $1,316,000.

9. Sold goods costing $1,641,000 for $2,501,000 on account.

a) Journalize the October transactions.

Answer 1

ans a
Events	Accounst Title	Dr	Cr
1)	Raw Material Inventory	$3,01,000
	Accounts Payable		$3,01,000
	(being raw material purcahsed on account)
2)	Work In process-Mixing	$2,11,000
	Work In process-Packaging	$46,000
	Raw Material Inventory		$2,57,000
	(being raw material issues to mixing and packaging department)
3)	Factory labor	$2,80,900
	Wages Payable		$2,80,900
	(being wages incurred)
4)
	Work In process-Mixing	$1,83,500
	Work In process-Packaging	$97,400
	Factory labor		$2,80,900
	(being wages incurred mixing and packaging department)
5)	Manufacturing overhead	$8,12,000
	Accounts Payable/other payable		$8,12,000
	(being manufacturing overhead incurred)
6)	Work In process-Mixing (29000*22)	$6,38,000
	Work In process-Packaging (7000*22)	$1,54,000
	Manufacturing overhead		$7,92,000
	(being manufacturing overhead alloated)
7)	Work In process-Packaging	$9,80,000
	Work In process-Mixing		$9,80,000
	(being units tranferred to packaging)
8)	Finished Goods Inventory	$13,16,000
	Work In process-Packaging		$13,16,000
	(being units tranferred to finished goods)
9)	Accounts Receivable	$25,01,000
	Sales		$25,01,000
	(being sales made on account)
	Cost of good sold	$16,41,000
	Finished Goods Inventory		$16,41,000
	(being COGS recorded)
	If any doubt please comment