Fast-Flow Paints produces mixer paint through a two state process, Mixing and Packing. The following events depict the movement of value into and out of production. Journalize each event if appropriate, if not, provide a short narrative reason as to why you choose not to journalize that action. Bob, the Production Manager, accepts an order to continue processing the current run of mixer base paint.
(a)$27,000,00 worth of material are withdrawn from Raw Materials inventory. Of this amount, $25,500.00 will be issued to the Mixing Department and the balance will be issued to the Maintenance Department to be used on the production line machines.
(b)Bob calculates that labor for the period is $12,500.00. Of this value $1,750.00 is for maintenance and indirect labor. The remainder is directly associated with mixing.
(c) Bob, who is paid salary but earns about $35.00/hour, spends 1 hour inspecting the production line.
(d) The Manufacturing overhead drivers for Mixing are hours of mixer time at $575.00 per hour, and material movements fro Raw Material at $125.00 per movement. An inspection of the machine timers reveals that a total of 8 hours has been consumed in making this product. An inspection of the of "Stocking Orders" indicates that only one material movement was utilized to "load" the raw materials.
(e) Within Fast-Flow items are transferred between departments at standard cost or value. This production run has created 4,015 gallons of mixer base paint. This paint is transferred to Packing at a standard cost of $10.05 per gallon.
(f) Packing draws $755.00 raw materials for packing of this production run.
(g) Packing documents that 12 hours of direct labor at $10.25 per hour were consumed in the packing of this production run.
(h) Packing uses a driver of direct labor hours to allocate manufacturing overhead at the rate of $25.00 per hour.
(i)Packing transfers there 1,005 gallons of packed goods to Finished Goods Inventory at a standard cost of $10.25 per gallon.