Buena Montana 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 January 1, Buena Montana Carpet Company had the following inventories: Finished Goods $7,200 1,000 Work in Process-Spinning Department Work in Process-Tufting Department 2,400 Materials 4,300 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Jan. 1 2 Materials purchased on account, $80,000 Materials requisitioned for use: Fiber-Spinning Department, $42,000 Carpet backing - Tufting Department, $34,600 Indirect materials-Spinning Department, $3,000 Indirect materials - Tufting Department, $2,900 Labor used: 31 Direct labor-Spinning Department, $26,900 Direct labor-Tufting Department, $17,800 Indirect labor-Spinning Department, $11,700 indirect materials Tuning Department, $2,900 31 Labor used: 31 Direct labor-Spinning Department, $26,900 Direct labor-Tufting Department, $17,800 Indirect labor-Spinning Department, $11,700 Indirect labor-Tufting Department, $11,800 Depreciation charged on fixed assets: Spinning Department, $5,300 Tufting Department, $3,500 Expired prepaid factory insurance: Spinning Department, $1,300 Tufting Department, $1,000 31 31 Applied factory overhead: 31 Spinning Department, $21,500 Tufting Department, $18,850 Production costs transferred from Spinning Department to Tufting Department, $85,000 Production costs transferred from Tufting Department to Finished Goods, $152,600 Cost of goods sold during the period, $155,300 31 31 Required: 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is CHART OF ACCOUNTS Buena Montana Carpet Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable EXPENSES 131 Materials 510 Cost Goods Sold 520 Wages Expense 141 Work in Process-Spinning Department 142 Work in Process-Tufting Department 531 Selling Expense 532 Insurance Expense 151 Factory Overhead-Spinning Department 152 Factory Overhead-Tufting Department 533 Utilities Expense 161 Finished Goods 534 Supplies Expense 171 Supplies 540 Administrative Expense 172 Prepaid Insurance 561 Depreciation Expense-Factory 173 Prepaid Expenses 590 Miscellaneous Expense 181 Land 710 Interest Expense 191 Factory 192 Accumulated Depreciation 191 Factory 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 10 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS ACCOUNTING FOLIATION LIABILITIES EQUITY 1 2 3 4 5 7 8 9 10 11 12 16 17 18 19 20 21 22 23 24 25 26 27 28 Final Questions 2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers. Materials 2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers. Materials $ Work in Process: $ Spinning Department Tufting Department $ Finished Goods $ 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Factory Overhead: Spinning Department $ Tufting Department $