Analyzing, recording, and posting process cost transactions.

The Clifford Manufacturing Company uses the process cost system. General ledger accounts and balances as of July 1, 19X5, are listed below.

Instructions 1. Enter the July 1, 19X5, balances in the general ledger accounts.
2. The transactions for July 19X5 are listed below. Record the July transactions in general journal form. Date all entries July 31. Start with journal page 7.
3. Post the July transactions to the accounts listed.

1. Purchased raw materials for $218,000 on credit.
2. Issued raw materials from the storeroom as follows:
To Forming Department $204,000 To Finishing Department 14,000 To Service Departments 18,000 3. Recorded labor costs of $264,000 at the payroll dates.
4. Charged labor costs to production as follows:
To Forming Department $ 52,000 To Finishing Department 174,000 To Service Departments 36,000 5. Incurred $32,000 in miscellaneous manufacturing overhead costs, such as repairs, power, lighting, and taxes. (Credit Other Accounts.)
6. Allocated manufacturing overhead costs to the producing departments as follows:
To Forming Department $26,000 To Finishing Department 44,000 7. Transferred goods costing $282,000 from the Forming Department to the Finishing Department.
8. Transferred goods costing $413,000 from the Finishing Department to Finished Goods Inventory.
9. Sold goods for $655,000 on credit in July.
10. Incurred costs of $454,000 on merchandise sold in July.

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111 121 Raw Materials 123 Accounts Receivable Work in Process-Forming Department $160,000 240,000 -0- 124 Work in Process-Finishing Department -0- 126 Finished Goods 360,000 201 Vouchers Payable 760,000 202 Salaries and Wages Payable -0- 204 Other Accounts 401 Sales -0- -0-