Reference no: EM132706813

Fiedel 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, 2020, inventories consisted of $25,000in Raw Materials, $0 in Work in Process-Mixing, $240,000in Work in Process-Packaging, and $280,000in Finished Goods. The beginning inventory for Packaging consisted of10,000units that were 50% complete in terms of conversion costs and fully complete in terms of materials. During October,50,000units were started into production in the mixing department and the following transactions were completed:

1. Purchased $280,000 of raw materials on account.
2. Issued raw materials for production: mixing $200,000 and packaging $40,000.
3. Incurred labour costs of $245,000.
4. Used factory labour: mixing $180,000 and packaging $65,000.
5. Incurred $780,000 of manufacturing overhead on account.
6. Applied manufacturing overhead on the basis of $20 per machine hour. Machine hours were 27,500 in mixing and 5,500 in packaging.
7. Transferred 44,500 units from mixing to packaging at a cost of $960,000.
8. Transferred 52,500 units from packaging to Finished Goods at a cost of $1,300,000.
9. Sold goods costing $1,600,000 for $2,500,000 on account.

Problem 1: Journalize the October transactions.(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)