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Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is

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Entries for Process Cost System 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: $23,490 Finished Goods 9,130 Work in Process-Making 11,900 Work in Process-Packing 5,160 Materials Departmental accounts are maintained for factory overhead, which both have zero balances on July 1 Manufacturing operations for July are summarized as follows: $292,610 a. Materials purchased on account b. Materials requisitioned for use: $193,290 Phosphate-Making Department 67,230 Packaging-Packing Department 7,560 Indirect materials-Making Department 2,710 Indirect materials-Packing Department c. Labor used: $138,090 Direct labor-Making Department 93,210 Direct labor-Packing Department 26,740 Indirect labor-Making Department 47,940 Indirect labor-Packing Department d. Depreciation charged on fixed assets: $25,210 Making Department 20,820 Packing Department e. Expired prepaid factory insurance: $4,780 Making Department 1,910 Packing Department f. Applied factory overhead: $65,900 Making Department 72,810 Packing Department $398,430 g. Production costs transferred from Making Department to Packing Department $627,050 h. Production costs transferred from Packing Department to Finished Goods $629,350 I. Cost of goods sold during the period 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 Credit Debit Item Account a. Caloulator Show Me How eBook Credit Debit Account Item b. d. Check My Work 2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making Department Work in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts. Factory Overhead-Making Department Factory Overhead- Packing Department tA

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