Sonsalla Company manufactures its product, Vitadrink, through two manufacturing
ID: 2442424 • Letter: S
Question
Sonsalla 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, 2011, inventories consisted of Raw Materials $22,690, Work in Process-Mixing $0, Work in Process-Packaging $245,270, and Finished Goods $290,310. The beginning inventory for Packaging consisted of 13,070 units that were 46% complete as to conversion costs and fully complete as to materials. During October, 45,400 units were started into production in the Mixing Department and the following transactions were completed.Purchased $298,120 of raw materials on account.
Issued raw materials for production: Mixing $207,680 and Packaging $47,362.
Incurred labor costs of $245,330.
Used factory labor: Mixing $183,570 and Packaging $61,760.
Incurred $789,440 of manufacturing overhead on account.
Applied indirect manufacturing overhead on the basis of $25 per machine hour. Machine hours were 28,930 in Mixing and 5,760 in Packaging.
Transferred 45,960 units from Mixing to Packaging at a cost of $977,600.
Transferred 55,210 units from Packaging to Finished Goods at a cost of $1,312,910.
Sold goods costing $1,605,300 for $2,480,600 on account.
Journalize the October transactions
Explanation / Answer
Date
Particulars
Debit
Credit
1
Raw Materials Inventory
$298,120
Accounts Payable
$298,120
Work in Process - Mixing
$207,680
Work in Process - Packaging
$47,362
Raw Materials Inventory
$255,042
3
Factory Labor
$245,330
Wages Payable
$245,330
4
Work in Process - Mixing
$183,570
Work in Process - Packaging
$61,760
Factory Labor
$245,330
5
Manufacturing Overhead
$789,440
Accounts Payable
$789,440
6
Work in Process—Mixing (28,930 * $25)
$723,250
Work in Process - Packaging (5,760 * $25)
$144,000
Manufacturing Overhead
$867,250
7
Work in Process - Packaging
$977,600
Work in Process—Mixing
$977,600
8
Finished Goods Inventory
$1,312,910
Work in Process—Packaging
$1,312,910
9
Accounts Receivable
$2,480,600
Sales
$2,480,600
Cost of Goods sold
$1,604,000
Finished Goods Inventory
$1,604,000
Date
Particulars
Debit
Credit
1
Raw Materials Inventory
$298,120
Accounts Payable
$298,120
Work in Process - Mixing
$207,680
Work in Process - Packaging
$47,362
Raw Materials Inventory
$255,042
3
Factory Labor
$245,330
Wages Payable
$245,330
4
Work in Process - Mixing
$183,570
Work in Process - Packaging
$61,760
Factory Labor
$245,330
5
Manufacturing Overhead
$789,440
Accounts Payable
$789,440
6
Work in Process—Mixing (28,930 * $25)
$723,250
Work in Process - Packaging (5,760 * $25)
$144,000
Manufacturing Overhead
$867,250
7
Work in Process - Packaging
$977,600
Work in Process—Mixing
$977,600
8
Finished Goods Inventory
$1,312,910
Work in Process—Packaging
$1,312,910
9
Accounts Receivable
$2,480,600
Sales
$2,480,600
Cost of Goods sold
$1,604,000
Finished Goods Inventory
$1,604,000
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