Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Fanning’s beginning balances and data pertinent to the mixing department’s activities for Year 2 follow:AccountsBeginning BalancesCash$41,700 Raw materials inventory 14,600 Production supplies 100 Work in process inventory (440,000 units) 52,800 Common stock$109,200 Fanning Cola issued additional common stock for $56,000 cash.The company purchased raw materials and production supplies for $43,250 and $700, respectively, in cash.The company issued $45,700 of raw materials to the mixing department for the production of 500,000 units of Sweet Spring that were started in Year 2. A unit of soft drink is the amount needed to fill a bottle.The mixing department used 2,100 hours of labor during Year 2, consisting of 1,900 hours for direct labor and 200 hours for indirect labor. The average wage was $9.50 per hour. All wages were paid in Year 2 in cash.The predetermined overhead rate was $1.50 per direct labor hour.Actual overhead costs other than indirect materials and indirect labor for the year amounted to $700, which was paid in cash.The mixing department completed 700,000 units of Sweet Spring. The remaining inventory was 40 percent complete.The completed soft drink was transferred to the bottling department.The ending balance in the Production Supplies account was $550.RequiredRecord the transactions in T-accounts. Req A and BReq CReq DRecord the transactions in T-accounts. (The cash expenditures in events No. 2 and No. 4 should be combined into a singleamount in the cash account for each event. Round intermediate calculations to 2 decimal places.)CashRaw MaterialsBeg. bal.Beg. bal.End, bal.End. bal.Work in process MixingWork in process BottlingBeg. bal.Beg. bal.End. bal.End. bal.Manufacturing OverheadProduction SuppliesBeg. bal.Beg. bal.End, bal.End. bal.Common StockBeg. bal.End. bal.< Req CReg D >

Answered: Required Record the transactions in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Fanning Cola Corporation produces a new soft drink brand, Sweet Spring, using two production departments: mixing and bottling. Fanning’s beginning balances and data pertinent to the mixing department’s activities for Year 2 follow:

Accounts	Beginning Balances
Cash	$	41,700
Raw materials inventory		14,600
Production supplies		100
Work in process inventory (440,000 units)		52,800
Common stock	$	109,200

Fanning Cola issued additional common stock for $56,000 cash.
The company purchased raw materials and production supplies for $43,250 and $700, respectively, in cash.
The company issued $45,700 of raw materials to the mixing department for the production of 500,000 units of Sweet Spring that were started in Year 2. A unit of soft drink is the amount needed to fill a bottle.
The mixing department used 2,100 hours of labor during Year 2, consisting of 1,900 hours for direct labor and 200 hours for indirect labor. The average wage was $9.50 per hour. All wages were paid in Year 2 in cash.
The predetermined overhead rate was $1.50 per direct labor hour.
Actual overhead costs other than indirect materials and indirect labor for the year amounted to $700, which was paid in cash.
The mixing department completed 700,000 units of Sweet Spring. The remaining inventory was 40 percent complete.
The completed soft drink was transferred to the bottling department.
The ending balance in the Production Supplies account was $550.

Required

Record the transactions in T-accounts.

Req A and B
Req C
Req D
Record the transactions in T-accounts. (The cash expenditures in events No. 2 and No. 4 should be combined into a single
amount in the cash account for each event. Round intermediate calculations to 2 decimal places.)
Cash
Raw Materials
Beg. bal.
Beg. bal.
End, bal.
End. bal.
Work in process Mixing
Work in process Bottling
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Manufacturing Overhead
Production Supplies
Beg. bal.
Beg. bal.
End, bal.
End. bal.
Common Stock
Beg. bal.
End. bal.
< Req C
Reg D >

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