Entries for process cost system Instructions Chart of Accounts Journal Final Questions Instructions Chart of Accounts Port Ormond 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 Tulting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods $7,200 Work in Process-Spinning Department 1,000 Work in Process-Tufting Department Materials 2,400 4,300 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Jan. 2 1 Materials purchased on account, $80,000 Materials requisitioned for use: 31 Fiber-Spinning Department, $42,000 Carpet backing-Tufting Department, $34,600 Indirect materials-Spinning Department, $3,000 Indirect materials-Tufting Department, $2,900 Labor used: Direct labor-Spinning Department, $26,900 Direct labor-Tufting Department, $17,800 Indirect labor-Spinning Department, $11,700 Indirect labor-Tufting Department, $11,800 31 Depreciation charged on fixed assets: Spinning Department, $5,300 31 Tufting Department, $3,500 Expired prepaid factory insurance: Spinning Department, $1,300 Tufting Department, $1,000 31 Applied factory overhead: Spinning Department, $21,500 Tufting Department, $18,850 31 Production costs transferred from Spinning Department to Tufting Department, $85,000 31 Production costs transferred from Tufting Department to Finished 31 Required: Goods, $152,600 Cost of goods sold during the period, $155,300 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a crdit entry when a credit amount is entered 2. Compute the January 31 balances of the inventory accounts.* 3. Compute the January 31 balances of the factory overhead accounts." "Enter your amounts in positive value. ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials CHART OF ACCOUNTS Port Ormond Carpet Company General Ledger 141 Work in Process-Spinning Department 142 Work in Process-Tufting Department 151 Factory Overhead-Spinning Department 152 Factory Overhead-Tufting Department 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Eamings 351 Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense Instructions Journal 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between fournal entries. CNOW joumals will automatically indent a credit entry when a credit amount is entered. JOURNAL PAGE 10 ACCOUNTING EQUATION DATE DESCRIPTION ROST 1 Jan.1 Materials DEBIT 80,000.00 CREDIT ASSETS LIABILITIESQUITY 2 Accounts Payable 80,000.00 3 Jan. 2 Work in Process-Spinning Department 42,000.00 4 Work in Process-Tufting Department 34,000.00 5 Factory Overhead-Spinning Department 3,000.00 + 6 Factory Overhead-Tufting Department 2,900.00 7 Jan. 31 Finished Goods 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Chart of Accounts ASSETS Final Questions CHART OF ACCOUNTS Port Ormond Carpet Company General Ledger REVENUE 2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value. Materials Work in Process: Spinning Department $ *Tufting Department $ Finished Goods $ Debit Credit 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: Spinning Department $ Tufting Department 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary