Entries for Process Cost System

Cincinnati 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 the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories:

Finished Goods	$10,330
Work in ProcessMaking	4,020
Work in ProcessPacking	5,230
Materials	2,270

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		$128,690
b.	Materials requisitioned for use
		PhosphateMaking Department	$85,010
		PackagingPacking Department	29,570
		Indirect materialsMaking Department	3,330
		Indirect materialsPacking Department	1,190
c.	Labor used
		Direct laborMaking Department	$60,730
		Direct laborPacking Department	40,990
		Indirect laborMaking Department	11,760
		Indirect laborPacking Department	21,080
d.	Depreciation charged on fixed assets
		Making Department	$11,090
		Packing Department	9,160
e.	Expired prepaid factory insurance
		Making Department	$2,100
		Packing Department	840
f.	Applied factory overhead
		Making Department	$28,980
		Packing Department	32,020
g.	Production costs transferred from Making Department to Packing Department		$175,220
h.	Production costs transferred from Packing Department to Finished Goods		$275,770
i.	Cost of goods sold during the period		$276,780

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.

Item	Account	Debit	Credit
a.	SelectAccounts PayableAccounts ReceivableFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 1
	SelectAccounts PayableCashFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 3
b.	SelectAccounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Making DepartmentItem 5
	SelectAccounts PayableAccounts ReceivableCost of Goods SoldFinished GoodsMaterialsWork in Process-Packing DepartmentItem 8
	SelectAccounts PayableCashCost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterialsItem 11
	SelectAccounts PayableAccounts ReceivableCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsItem 14
	SelectAccounts PayableAccounts ReceivableCost of Goods SoldFinished GoodsMaterialsWork in Process-Packing DepartmentItem 17
c.	SelectAccounts PayableCost of Goods SoldFinished GoodsMaterialsWages PayableWork in Process-Making DepartmentItem 20
	SelectAccounts PayableCost of Goods SoldFinished GoodsMaterialsWages PayableWork in Process-Packing DepartmentItem 23
	SelectAccounts PayableCashFactory Overhead-Making DepartmentFinished GoodsMaterialsWages ExpenseItem 26
	SelectCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWages ExpenseWages PayableItem 29
	SelectAccounts ReceivableCost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsWages PayableWork in Process-Making DepartmentItem 32
d.	SelectAccounts PayableAccumulated DepreciationDepreciation ExpenseFactory Overhead-Making DepartmentWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 35
	SelectAccounts PayableAccumulated DepreciationDepreciation ExpenseFactory Overhead-Packing DepartmentWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 38
	SelectAccumulated DepreciationCashDepreciation ExpenseFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentWork in Process-Packing DepartmentItem 41
e.	SelectFactory Overhead-Making DepartmentFinished GoodsInsurance ExpenseMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 44
	SelectFactory Overhead-Packing DepartmentFinished GoodsInsurance ExpensePrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 47
	SelectAccounts PayableFactory Overhead-Making DepartmentFinished GoodsPrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 50
f.	SelectCost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentItem 53
	SelectCost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Packing DepartmentItem 56
	SelectAccounts PayableFactory Overhead-Making DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 59
	SelectAccounts PayableCost of Goods SoldFinished GoodsFactory Overhead-Packing DepartmentWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 62
g.	SelectFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 65
	SelectFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 67
h.	SelectAccounts ReceivableCost of Goods SoldFactory Overhead-Packing Dept.Finished GoodsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 69
	SelectCost of Goods SoldFactory Overhead-Packing Dept.Finished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 71
i.	SelectCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 73
	SelectCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing DepartmentItem 75

2. Compute the July 31 balances of the inventory accounts.

Materials	$
Work in ProcessMaking Department	$
Work in ProcessPacking Department	$
Finished Goods	$

3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance.

Factory OverheadMaking Department	$	SelectCreditDebitItem 82
Factory OverheadPacking Department	$	SelectCreditDebit