Problem 16-1A No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6.
ID: 2416904 • Letter: P
Question
Problem 16-1A
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
Problem 16-1A
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 $26,630, Work in Process—Mixing $0, Work in Process—Packaging $252,240, and Finished Goods $292,060. The beginning inventory for Packaging consisted of 13,570 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 51,810 units were started into production in the Mixing Department and the following transactions were completed.1. Purchased $302,260 of raw materials on account. 2. Issued raw materials for production: Mixing $212,690 and Packaging $47,250. 3. Incurred labor costs of $267,110. 4. Used factory labor: Mixing $186,050 and Packaging $81,060. 5. Incurred $1,004,144 of manufacturing overhead on account. 6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 31,970 in Mixing and 8,180 in Packaging. 7. Transferred 47,350 units from Mixing to Packaging at a cost of $981,780. 8. Transferred 57,950 units from Packaging to Finished Goods at a cost of $1,318,800. 9. Sold goods costing $1,643,500 for $2,502,800 on account.
Journalize the October transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
(To record the sale.) (To record the cost of goods sold.)Explanation / Answer
Conwell Compnay Journal Entries Sr No Account Title Dr $ Cr $ 1 Raw Materials Inventory 302,260.00 Accounts Payable 302,260.00 2 WIP -Mixing 212,690.00 WIP -Packaging 47,250.00 Raw Materials Inventory 259,940.00 3 Direct Labor Wages Expense 267,110.00 Wages Payable 267,110.00 4 WIP -Mixing 186,050.00 WIP -Packaging 81,060.00 Direct Labor Wages Expense 267,110.00 5 Manufacturing Overhead 1,004,144.00 Accounts Payable 1,004,144.00 6 WIP -Mixing 767,280.00 WIP -Packaging 196,320.00 Manufacturing Overhead 963,600.00 7 WIP -Mixing 981,780.00 WIP -Packaging 981,780.00 8 WIP -Packaging 1,318,800.00 Finished Goods 1,318,800.00 9 Sales Revenue 2,502,800.00 Accounts Receivable 2,502,800.00 Finished Goods 1,643,500.00 Cost Of Goods Sold 1,643,500.00