Q3 Sohar Food Manufacturing Co. manufactures a nutrient. Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2019, inventories consisted of raw materials $5,000; Work-in-process -Blending $0 and Work-in-process-Packaging $3,945 and Finished goods $7,500. During August 9,000 units were started into production in Blending and the following transactions were completed. During August, the following transactions occurred. 1. Purchased $75,000 of raw materials on account. 2. Incurred $62,310 of factory labor. (Credit Wages Payable.) 3. Incurred $124,500 of manufacturing overhead; $120,000 on account. 4. Requisitioned materials for Blending $56,790 and Packaging $21,420. 5. Used factory labor for Blending $39,960 and Packaging $22,350. 6. Applied overhead at the rate of $30 per machine hour. Machine hours were Blending 2700 and Packaging 900. 7. Transferred goods costing $134,820 from the Blending Department to the Packaging Department. 8. Transferred goods costing $202,470 from Packaging to Finished Goods. Instructions: Journalize the above transactions for the month of August 2019.
Q3 Sohar Food Manufacturing Co. manufactures a nutrient. Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2019, inventories consisted of raw materials $5,000; Work-in-process -Blending $0 and Work-in-process-Packaging $3,945 and Finished goods $7,500. During August 9,000 units were started into production in Blending and the following transactions were completed. During August, the following transactions occurred. 1. Purchased $75,000 of raw materials on account. 2. Incurred $62,310 of factory labor. (Credit Wages Payable.) 3. Incurred $124,500 of manufacturing overhead; $120,000 on account. 4. Requisitioned materials for Blending $56,790 and Packaging $21,420. 5. Used factory labor for Blending $39,960 and Packaging $22,350. 6. Applied overhead at the rate of $30 per machine hour. Machine hours were Blending 2700 and Packaging 900. 7. Transferred goods costing $134,820 from the Blending Department to the Packaging Department. 8. Transferred goods costing $202,470 from Packaging to Finished Goods. Instructions: Journalize the above transactions for the month of August 2019.
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....
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Q3
Sohar Food Manufacturing Co. manufactures a nutrient. Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process.
On August 1, 2019, inventories consisted of raw materials $5,000; Work-in-process -Blending $0 and Work-in-process-Packaging $3,945 and Finished goods $7,500.
During August 9,000 units were started into production in Blending and the following transactions were completed.
During August, the following transactions occurred.
1. Purchased $75,000 of raw materials on account.
2. Incurred $62,310 of factory labor. (Credit Wages Payable.)
3. Incurred $124,500 of manufacturing overhead ; $120,000 on account.
4. Requisitioned materials for Blending $56,790 and Packaging $21,420.
5. Used factory labor for Blending $39,960 and Packaging $22,350.
6. Applied overhead at the rate of $30 per machine hour.
Machine hours were Blending 2700 and Packaging 900.
7. Transferred goods costing $134,820 from the Blending Department to the Packaging Department.
8. Transferred goods costing $202,470 from Packaging to Finished Goods.
Instructions:
Journalize the above transactions for the month of August 2019.
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