Q3 Sohar Food Manufacturing Co. manufactures a nutrient. Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2019, inventories consisted of raw materials $5,000; Work-in-process -Blending $0 and Work-in-process-Packaging $3,945 and Finished goods $7,500. During August 9,000 units were started into production in Blending and the following transactions were completed. During August, the following transactions occurred. 1. Purchased $75,000 of raw materials on account. 2. Incurred $62,310 of factory labor. (Credit Wages Payable.) 3. Incurred $124,500 of manufacturing overhead; $120,000 on account. 4. Requisitioned materials for Blending $56,790 and Packaging $21,420. 5. Used factory labor for Blending $39,960 and Packaging $22,350. 6. Applied overhead at the rate of $30 per machine hour. Machine hours were Blending 2700 and Packaging 900. 7. Transferred goods costing $134,820 from the Blending Department to the Packaging Department. 8. Transferred goods costing $202,470 from Packaging to Finished Goods. Instructions: Journalize the above transactions for the month of August 2019.
Q3 Sohar Food Manufacturing Co. manufactures a nutrient. Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2019, inventories consisted of raw materials $5,000; Work-in-process -Blending $0 and Work-in-process-Packaging $3,945 and Finished goods $7,500. During August 9,000 units were started into production in Blending and the following transactions were completed. During August, the following transactions occurred. 1. Purchased $75,000 of raw materials on account. 2. Incurred $62,310 of factory labor. (Credit Wages Payable.) 3. Incurred $124,500 of manufacturing overhead; $120,000 on account. 4. Requisitioned materials for Blending $56,790 and Packaging $21,420. 5. Used factory labor for Blending $39,960 and Packaging $22,350. 6. Applied overhead at the rate of $30 per machine hour. Machine hours were Blending 2700 and Packaging 900. 7. Transferred goods costing $134,820 from the Blending Department to the Packaging Department. 8. Transferred goods costing $202,470 from Packaging to Finished Goods. Instructions: Journalize the above transactions for the month of August 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Q3
Sohar Food Manufacturing Co. manufactures a nutrient. Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process.
On August 1, 2019, inventories consisted of raw materials $5,000; Work-in-process -Blending $0 and Work-in-process-Packaging $3,945 and Finished goods $7,500.
During August 9,000 units were started into production in Blending and the following transactions were completed.
During August, the following transactions occurred.
1. Purchased $75,000 of raw materials on account.
2. Incurred $62,310 of factory labor. (Credit Wages Payable.)
3. Incurred $124,500 of manufacturing overhead ; $120,000 on account.
4. Requisitioned materials for Blending $56,790 and Packaging $21,420.
5. Used factory labor for Blending $39,960 and Packaging $22,350.
6. Applied overhead at the rate of $30 per machine hour.
Machine hours were Blending 2700 and Packaging 900.
7. Transferred goods costing $134,820 from the Blending Department to the Packaging Department.
8. Transferred goods costing $202,470 from Packaging to Finished Goods.
Instructions:
Journalize the above transactions for the month of August 2019.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education