Chaptet 17 Process Cost Systems Problem 17-1B

Problems: Series B V2. Materials 31 balance, $11,390 PR 17-1B Entries for process cost system Obj. 1,3 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: THINEW Finished Goods Work in Process-Making Work in Process--Packing Materials $13,500 6.790 7,350 5.100 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. (Continued) ocess Cost Systems Manufacturing operations for July are summarized as follows: $149,800 $105,700 31,300 4,980 1,530 $ 32,400 40,900 15.400 18,300 a. Materials purchased on account b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department. Indirect materials-Packing Department. C. Labor used: Direct labor--Making Department Direct labor-Packing Department. Indirect labor-Making Department. Indirect labor-Packing Department d. Depreciation charged on fixed assets: Making Department... Packing Department e. Expired prepaid factory insurance: Making Department.... Packing Department f. Applied factory overhead: Making Department.. 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 $ 10,700 7.900 $ 2.000 1,500 $ 32,570 30,050 $166,790 $263,400 $265,200 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