McNally Company manufactures a nutrient, Everlife, through two manufacturing processes: blending and packaging. All materials are entered

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McNally Company manufactures a nutrient, Everlife, through two manufacturing processes: blending and packaging. All materials are entered at the beginning of each process. On August 1, 2012, inventories consisted of $5,000 inRaw Materials, $0 in Work in Process-Blending, $3,945 in Work in Process-Packaging, and $7,500 in Finished Goods. The beginning inventory for packaging consisted of 500 units, two-fifths complete in terms of conversion costs and fully complete in terms of materials. During August, 9,000 units were started into production in blending, and the following transactions were completed:
1. Purchased $25,000 of raw materials on account.
2. Issued raw materials for production: blending $18,930 and packaging $9,140.
3. Incurred labour costs of $23,770.
4. Used factory labour: blending $13,320 and packaging $10,450.
5. Incurred $41,500 of manufacturing overhead on account.
6. Applied manufacturing overhead at the rate of $25 per machine hour. Machine hours were 900 for blending and 300 for packaging.
7. Transferred 8,200 units from blending to packaging at a cost of $44,940.
8. Transferred 8,600 units from packaging to Finished Goods at a cost of $67,490.
9. Sold goods costing $62,000 for $90,000 on account.
Instructions
Journalize the August transactions.
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Related Book For  answer-question

Managerial Accounting Tools for Business Decision Making

ISBN: 978-1118033890

3rd Canadian edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly

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