Elephant Enterprises 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 July 1, Elephant Carpet Company had the following inventories:

Finished Goods $51,200

Work in Process-Spinning Department 8,500

Work in Process-Tufting Department 23,600

Raw Materials 41,100

Departmental accounts are maintained for factory overhead and both have zero balances on July 1. Manufacturing operations for July are summarized as follows:

Materials purchased on account $825,300

Materials requisitioned for use:

FiberSpinning Department $547,200

Carpet backingTufting Department 215,300

Indirect materialsSpinning Department 44,200

Indirect materialsTufting Department 16,900

Labor used:

Direct laborSpinning Department $234,700

Direct laborTufting Department 189,900

Indirect laborSpinning Department 124,200

Indirect laborTufting Department 110,000

Depreciation charged on fixed assets:

Spinning Department $ 56,700

Tufting Department 32,500

Expired prepaid factory insurance:

Spinning Department $ 12,000

Tufting Department 9,000

Applied factory overhead:

Spinning Department $235,600

Tufting Department 169,800

Production costs transferred from Spinning Department to Tufting Department $1,021,600

Production costs transferred from Tufting Department to Finished Goods $1,590,200

Cost of goods sold during the period $1,600,700

Instructions:

Journalize the entries to record the operations, identifying each entry by the given letter.

Compute the July 31 balances of the four inventory accounts. They are Materials, Work in Process-Spinning Dept., Work in Process-Tufting Dept., and Finished Goods.

Compute the July 31 balances of the two factory overhead accounts. They are Factory Overhead-Spinning Dept., and Factory Overhead-Tufting Dept.