Wilbury 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, 2014, inventories consisted of Raw Materials $5,000, Work in Process—Blending $0, Work in Process—Packaging $3,945, and Finished Goods $7,500. The beginning inventory for Packaging consisted of 500 units, two-fifths complete as to conversion costs and fully complete as to 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 labor costs of $25,770.
  4. Used factory labor: Blending $15,320 and Packaging $10,450.
  5. Incurred $36,500 of manufacturing overhead on account.
  6. Applied manufacturing overhead at the rate of $28 per machine hour. Machine hours were Blending 900 and Packaging 300.
  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.