No. Account Titles and ExplanationDebitCredit1.Raw Materials InventoryAccounts Payable2.Work in Process - MixingWork in Process - PackagingRaw Materials Inventory3.Wages Payable4.Work in Process - MixingWork in Process - PackagingRaw Materials Inventory5.Manufacturing OverheadAccounts Payable6.Work in Process - MixingWork in Process - PackagingManufacturing Overhead7.Work in Process - PackagingWork in Process - Mixing8.Finished Goods Inventory9.Accounts ReceivableSales Revenue(To record the sale)Cost of Goods SoldFinished Goods Inventory(To record the cost of goods sold) Sandhill Company manufactures its product, Vitadrink, through two manufacturing processes: Mixing and Packaging. All materials areentered at the beginning of each process. On October 1, 2022, inventories consisted of Raw Materials $31,200, Work in Process-Mixing $0, Work in Process-Packaging $300,000, and Finished Goods $346,800. The beginning inventory for Packaging consistedof 12,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 60,000 unitswere started into production in the Mixing Department and the following transactions were completed.1.Purchased $360,000 of raw materials on account.2.Issued direct materials for production: Mixing $252,000 and Packaging $54,000.3.Incurred labor costs of $334,680. (Use Wages Payable.)4.Used factory labor: Mixing $219,000 and Packaging $115,680.5.Incurred $972,000 of manufacturing overhead on account.6.Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 33,600 in Mixing and 7,200 inPackaging.7.Transferred 54,000 units from Mixing to Packaging at a cost of $1,174,800.8.Completed and transferred 63,600 units from Packaging to Finished Goods at a cost of $1,578,000.9.Sold goods costing $1,924,800 for $3,000,000 on account.

Name: No. Account Titles and ExplanationDebitCredit1.Raw Materials Inventor
Uploaded: 2024-03-20T06:32:49.000Z
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Description: No. Account Titles and ExplanationDebitCredit1.Raw Materials InventoryAccounts Payable2.Work in Process - MixingWork in Process - PackagingRaw Materials Inventory3.Wages Payable4.Work in Process - MixingWork in Process - PackagingRaw Materials Inven

The question is based on the concept of Cost Accounting.

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Purchased $360,000 of raw materials on account. Issued direct materials for production: Mixing $252,000 and Packaging $54,000. Incurred labor costs of $334,680. (Use Wages Payable.) Used factory labor: Mixing $219,000 and Packaging $115,680. Incurred $972,000 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 33,600 in Mixing and 7,20 Packaging. Transferred 54,000 units from Mixing to Packaging at a cost of $1,174,800. Completed and transferred 63,600 units from Packaging to Finished Goods at a cost of $1,578,000. Sold goods costing $1,924,800 for $3,000,000 on account.

Purchased $360,000 of raw materials on account. Issued direct materials for production: Mixing $252,000 and Packaging $54,000. Incurred labor costs of $334,680. (Use Wages Payable.) Used factory labor: Mixing $219,000 and Packaging $115,680. Incurred $972,000 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $23 per machine hour. Machine hours were 33,600 in Mixing and 7,20 Packaging. Transferred 54,000 units from Mixing to Packaging at a cost of $1,174,800. Completed and transferred 63,600 units from Packaging to Finished Goods at a cost of $1,578,000. Sold goods costing $1,924,800 for $3,000,000 on account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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