Chapter 20 Homework Show Me HowCalculator eBook Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories Finished Goods Work in Process-Making Work in Process-Packing Materials $5,410 2,100 2,740 1,190 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1 Manufacturing operations for July are summarized as follows a. Materials purchased on account b. Materials requisitioned for use: $67,410 Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $44,530 15,490 1,740 620 C. Labor used: Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department 31,810 21,470 6,160 11,040 Chapter 20 Homework Show Me HowCalculator eBook Indirect labor-Packing Department 11,040 d. Depreciation charged on fixed assets: Making Department $5,810 Packing Department 4,800 e. Expired prepaid factory insuranoe Making Department $1,100 Packing Department 440 f. Applied factory overhead Making Department $15,180 16,770 $91,780 $144,450 $144,980 Packing Department g. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods i. Cost of goods sold during the period Required: 1. Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank Cost of Goods Sold 144,980 Finished Goods 144,980 2. Compute the July 31 balances of the inventory accounts Materials Work in Process-Making Department Work in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts. Factory Overhead-Making Department Factory Overhead-Packing Department Feedback Check My Work 1. Remember that there are three different types of inventory; materials, work in process, and finished goods. Each department has a work in process account to track the costs that were accumulated in that department. 2 and 3. Set up T accounts to help determine the balances from the transactions above Check My Work Previous