Rimrock Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On July 1, Rimrock Carpet Company had the following inventories:
Finished Goods .............. $40,750
Work in Process—Spinning Department .... 7,250
Work in Process—Tufting Department ....... 30,375
Materials .................. 23,250
Departmental accounts are maintained for factory overhead, and both have zero balances on July 1. Manufacturing operations for July are summarized as follows:
a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . $915,500
b. Materials requisitioned for use:
Fiber—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $611,625
Carpet backing—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . 240,375
Indirect materials—Spinning Department . . . . . . . . . . . . . . . . . . . . . . 42,500
Indirect materials—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . 11,875
c. Labor used:
Direct labor—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . $292,750
Direct labor—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . 207,125
Indirect labor—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . 115,375
Indirect labor—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . 67,750
d. Depreciation charged on fixed assets:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $79,000
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,000
e. Expired prepaid factory insurance:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,500
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
f. Applied factory overhead:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $256,250
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,250
g. Production costs transferred from Spinning Dept. to
Tufting Dept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,142,875
h. Production costs transferred from Tufting Dept.
to finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,725,125
i. Cost of goods sold during the period . . . . . . . . . . . . . . . . . . . . . . . $1,741,250

Instructions
1. Journalize the entries to record the operations, identifying each entry by letter.
2. Compute the July 31 balances of the inventory accounts.
3. Compute the July 31 balances of the factory overhead accounts.