chapter 17 part 1

Port Ormond 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 ampet backing is added at the beginning of the process and the process is completed on January 1, Port Ormond Carpet Company had the following inventories: Finished Goods Work in Process-Spinning Department Work in Process-Tufting Department Materials $62,000 35,000 28,500 17,000 Departmental accounts are maintained for tactory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Jan 1 2 31 Materials purchased on account, $500,000 Materials requisitioned for use: Fiber-Spinning Department, $275,000 Carpet backing-Tutting Department, $110,000 Indirect materials-Spinning Department. $46,000 Indirect materials-Tutting Department, $39,500 Labor used: Direct labor-Spinning Department, $185,000 Direct labor-Tutting Department, $98,000 Indirect labor-Spinning Department, S18,500 Indirect labor-Tufting Department. $9,000 Depreciation charged on fixed assets: Spinning Department, $12,500 31 Next 1. Journakze 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 Nitles. CNOW journals do not use lines for prices or journal explanations. Every line on a journal page is used for debitor credit entries. Do not add explanations or skip a line between journal entries. CNOW joumals will automatically indent a credit entry when a credit amount is evidered PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LABIJTIES EQUITY 1 2 1 4 5 7 8 9 10 11 12 2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value. Materials Work in Process: Spinning Department Tufting Department Finished Goods $ 111 S 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: Spinning Department Tufting Department S