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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, 2016, inventories consisted of $5,000 in Raw 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:
Instructions
Question 1: Journalize the August transactions.
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