Weygandt, Managerial, 4e

ACC 560/ Managerial Accounting

Homework Problems Chapter 3

P3-3A


Correct.


Fiedel 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, 2008, inventories consisted of Raw Materials $26,000,Work in Process-Mixing $0, Work in Process-Packaging $250,000, and Finished Goods $289,000. The beginning inventory for Packaging consisted of 10,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 50,000 units were started into production in the Mixing Department and the following transactions were completed.


Purchased $300,000 of raw materials on account.


Issued raw materials for production: Mixing $210,000 and Packaging $45,000.


Incurred labor costs of $248,900.


Used factory labor: Mixing $182,500 and Packaging $66,400.


Incurred $790,000 of manufacturing overhead on account.


Applied indirect manufacturing overhead on the basis of $22 per machine hour. Machine hours were 28,000 in Mixing and 6,000 in Packaging.


Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.


Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.


Sold goods costing $1,604,000 for $2,500,000 on account.

Journalize the October transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)