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 $26,000, Work in Process—Mixing $0, Work in Process—Packaging $250,000, and Finished Goods $289,000.The beginning inventory for Packaging consisted of 10,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 50,000 units were started into production in the Mixing Department and the following transactions were completed.
- Purchased $300,000 of raw materials on account.
- Issued raw materials for production: Mixing $210,000 and Packaging $45,000.
- Incurred labor costs of $258,900.
- Used factory labor: Mixing $182,500 and Packaging $76,400.
- Incurred $810,000 of manufacturing overhead on account.
- Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 28,000 in Mixing and 6,000 in Packaging.
- Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.
- Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.
- Sold goods costing $1,604,000 for $2,500,000 on account.
Journalize the October transactions.