Waterway Out 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 $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 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 $304,800 of raw materials on account. Issued raw materials for production: Mixing $211,800 and Packaging $49,900. Incurred labor costs of $288.100. Used factory labor: Mixing $187,000 and Packaging $101.100. Incurred $917,100 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in Packaging. Transferred 46,700 units from Mixing to Packaging at a cost of $982,800. No Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319,000. Sold goods costing $1,645,000 for $2.505,000 on account. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
Waterway Out 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 $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 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 $304,800 of raw materials on account. Issued raw materials for production: Mixing $211,800 and Packaging $49,900. Incurred labor costs of $288.100. Used factory labor: Mixing $187,000 and Packaging $101.100. Incurred $917,100 of manufacturing overhead on account. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in Packaging. Transferred 46,700 units from Mixing to Packaging at a cost of $982,800. No Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319,000. Sold goods costing $1,645,000 for $2.505,000 on account. Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Don't give answer in image format
Transcribed Image Text:Current Attempt in Progress
Waterway Out 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 $251,200, and Finished Goods $293,400. The beginning inventory for Packaging
consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During
October, 52,700 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 $304,800 of raw materials on account.
Issued raw materials for production: Mixing $211,800 and Packaging $49,900.
Incurred labor costs of $288.100.
Used factory labor: Mixing $187,000 and Packaging $101,100,
Incurred $917,100 of manufacturing overhead on account.
Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,600 in Mixing and 8,700 in
Packaging.
Transferred 46,700 units from Mixing to Packaging at a cost of $982,800.
Transferred 55,800 units from Packaging to Finished Goods at a cost of $1,319.000.
Sold goods costing $1,645,000 for $2.505,000 on account.
Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually)
Debit
No. Account Titles and Explanation
Credit
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
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