Ivanhoe 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, 2022, inventories consisted of Raw Materials $22,360, Work in Process- Mixing $0, Work in Process-Packaging $215,000, and Finished Goods $248,540. The beginning inventory for Packaging consisted of 8,600 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 43,000 units were started into production in the Mixing Department and the following transactions were completed. 1 2 3. 4 5. 6. 7. 8 9. Purchased $258,000 of raw materials on account. Issued direct materials for production: Mixing $180,600 and Packaging $38,700. Incurred labor costs of $239,854 (Use Wages Payable) Used factory labor: Mixing $156,950 and Packaging $82,904. Incurred $696.600 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 24.080 in Mixing and 5,160 in Packaging Transferred 38.700 units from Mixing to Packaging at a cost of $841,940. Completed and transferred 45.580 units from Packaging to Finished Goods at a cost of $1.130,900. Sold goods costing $1,379,440 for $2.150,000 on account.
Ivanhoe 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, 2022, inventories consisted of Raw Materials $22,360, Work in Process- Mixing $0, Work in Process-Packaging $215,000, and Finished Goods $248,540. The beginning inventory for Packaging consisted of 8,600 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 43,000 units were started into production in the Mixing Department and the following transactions were completed. 1 2 3. 4 5. 6. 7. 8 9. Purchased $258,000 of raw materials on account. Issued direct materials for production: Mixing $180,600 and Packaging $38,700. Incurred labor costs of $239,854 (Use Wages Payable) Used factory labor: Mixing $156,950 and Packaging $82,904. Incurred $696.600 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 24.080 in Mixing and 5,160 in Packaging Transferred 38.700 units from Mixing to Packaging at a cost of $841,940. Completed and transferred 45.580 units from Packaging to Finished Goods at a cost of $1.130,900. Sold goods costing $1,379,440 for $2.150,000 on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Do Not Give Solution In Image Format And Please Fast Answering
Transcribed Image Text:No. Account Titles and Explanation
1.
2.
3.
Show Transcribed Text
7.
6.
8.
(To record the sale)
(To record the cost of goods sold)
Debit
Credit
Transcribed Image Text:Ivanhoe 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, 2022, inventories consisted of Raw Materials $22,360, Work in Process-
Mixing $0, Work in Process-Packaging $215,000, and Finished Goods $248,540. The beginning inventory for Packaging consisted
of 8,600 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 43,000 units were
started into production in the Mixing Department and the following transactions were completed.
1.
2
3.
4.
5.
6.
7.
8.
9.
Purchased $258,000 of raw materials on account.
Issued direct materials for production: Mixing $180,600 and Packaging $38,700.
Incurred labor costs of $239,854 (Use Wages Payable.)
Used factory labor: Mixing $156,950 and Packaging $82.904.
Incurred $696,600 of manufacturing overhead on account.
Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 24,080 in Mixing and 5,160 in
Packaging
Transferred 38,700 units from Mixing to Packaging at a cost of $841,940.
Completed and transferred 45,580 units from Packaging to Finished Goods at a cost of $1,130,900
Sold goods costing $1,379,440 for $2.150,000 on account.
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