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Wilbury Company 25000

Price: $2.50


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.

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