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Entries for process cost system Homepride Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn.

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Entries for process cost system Homepride 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 carpet backing is added at the beginning of the process and the process is completed. On August 1, Homepride Carpet Company had the following inventories: Finished Goods $4,800 Work in Process-Spinning Department 1,200 Work in Process-Tufting Department 1,900 Materials 3,700 Departmental accounts are maintained for factors- overhead, and both have zero balances on August 1. Manufacturing operations for August are summarized as follows: a. Materials purchased on account $ 74,200 b. Materials requisitioned for use: Fiber-Spinning Department $ 38,300 Carpet backing-Tufting Department 31,200 Indirect materials-Spinning Department 3,000 Indirect materials-Tufting Department 2,400 c. Labor used: Direct labor-Spinning Department $ 22,300 Direct labor-Tufting Department 16,900 Indirect labor-Spinning Department 11,900 Indirect labor-Tufting Department 10,200 d. Depreciation charged on fixed assets: Spinning Department $ 4,900 Tufting Department 3,000 e. Expired prepaid factory insurance: Spinning Department $ 1,000 Tufting Department 800 f. Applied factory overhead: Spinning Department $ 21,400 Tufting Department 15,600 g. Production costs transferred from Spinning Department to Tufting Department $ 83,000 h. Production costs transferred from Tufting Department to Finished Goods $ 143,700 i. Cost of goods sold during the period $ 146,900 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the August 31 balances of the inventory accounts. 3. Compute the August 31 balances of the factors overhead accounts

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