Conwell 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, 2014, 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. 1. Purchased $303,300 of raw materials on account.
2. Issued raw materials for production: Mixing $213,200 and Packaging $49,400.
3. Incurred labor costs of $285,900.
4. Used factory labor: Mixing $185,500 and Packaging $100,400.
5. Incurred $928,800 of manufacturing overhead on account.
6. Applied manufacturing overhead on the basis of $22 per machine hour. Machine hours were 31,400 in Mixing and 9,000 in Packaging.
7. Transferred 47,300 units from Mixing to Packaging at a cost of $983,500.
8. Transferred 57,700 units from Packaging to Finished Goods at a cost of $1,317,000.
9. Sold goods costing $1,644,000 for $2,503,000 on account.
No. Account Titles and Explanation Debit Credit
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(To record the sale.)
(To record the cost of goods sold.)