Question

Emergency help needed I'll rate need it anhour

Fast-Flow Paints produces mixer base paint through a two–stageprocess, Mixing and Packaging. The following events depict themovement of value into and out of production. Journalize each eventif appropriate; if not, provide a short narrative reason as to whyyou chose not to journalize the action. Nelson, the productionmanager, accepts an order to continue processing the current run ofmixer base paint.

(a)	Materials worth $27,000.00 arewithdrawn from raw materials inventory. Of this amount, $25,500.00will be issued to the Mixing Department, and the balance will beissued to the Maintenance Department to be used on production linemachines.
(b)	Nelson calculates that labor forthe period is $12,500.00. Of this amount, $1,750.00 is formaintenance and indirect labor. The remainder is directlyassociated with mixing.
(c)	Nelson, who is paid a salary butearns about $35.00 per hour, spends one hour inspecting theproduction line.
(d)	The manufacturing overhead driversfor mixing are hours of mixer time at $575.00 per hour, andmaterial movements from materials at $125.00 per movement. Aninspection of the machine timers reveals that a total of eighthours has been consumed in making this product. An inspection of"stocking orders" indicates that only one material movement wasutilized to load the raw materials. (Note: All values havebeen journalized to Factory Overhead. You need only apply them tothe production run.)
(e)	Within Fast-Flow, items aretransferred between departments at a standard cost. This productionrun has created 4,015 gallons of mixer base paint. This paint istransferred to Packaging at a standard cost of $10.05 per gallon.(Round calculation to the nearest whole dollar.)
(f)	Packaging draws $755.00 ofmaterials for packaging of this production run.
(g)	Packaging documents that 12 hoursof direct labor at $10.25 per hour were consumed in the packagingof this production run.
(h)	Packaging uses a cost driver ofdirect labor hours to allocate manufacturing overhead at the rateof $25.00 per hour.
(i)	Packaging transfers 4,015 gallonsof packaged goods to Finished Goods Inventory at a standard cost of$10.34 per gallon. (Round calculation to the nearest wholedollar.)

Chart of Accounts

CHARTOF ACCOUNTS

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
122	Supplies
123	Prepaid Insurance
130	Materials
132	Work in Process-Mixing
133	Work in Process-Packaging
134	Factory Overhead - Mixing
135	Factory Overhead - Packaging
136	Finished Goods Inventory
181	Land
191	Machinery

	LIABILITIES
210	Accounts Payable
231	Notes Payable
232	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Insurance Expense
532	Utilities Expense
533	Supplies Expense
560	Depreciation Expense-Machinery
590	Miscellaneous Expense
710	Interest Expense

General Journal

Prepare the journal entries for each event depict the movementof value into and out of production on December 31. Refer to theChart of Accounts for exact wording of account titles. Roundanswers to the nearest dollar.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST.REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Final Question

c. Nelson, who is paid a salary but earns about $35.00 per hour,spends one hour inspecting the production line.

Nelson's inspection of the assembly line is chargeable toproduction. Since he is the manager of a production unit, it willbe incorporated in the cost of production through the allocation ofoverhead.