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 Depart the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories: $11,070 Finished Goods Work in Process-Making 4,300 Work in Process-Packing 5,610 Materials 2,430 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 $137,880 b. Materials requisitioned for use: $91,080 31,680 3,560 1,280 $65,070 43,920 12,600 22,590 Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials -Packing Department C. Labor used: Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department d. Depreciation charged on fixed assets: Making Department Packing Department e. Expired prepaid factory insurance: Making Department Packing Department f. Applied factory overhead: Making Department Packing Department 9. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods . Cost of goods sold during the period Required: $11,880 9,810 $2,250 900 $31,050 34,310 $187,740 $295,470 $296,550 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. ILCIT nucuunil VEVIL UT EUIL a. Materials 137,880 Accounts Payable 137,880 b. Work in Process-Making Department 91,080 Work in Process-Packing Department 31,680 Factory Overhead-Making Department 3,560 ~ 1,280 Factory Overhead-Packing Department Materials 127,600 Work in Process-Making Department 65,070 v Work in Process-Packing Department 43,920 Factory Overhead-Making Department 12,600 22,590 Factory Overhead-Packing Department Wages Payable 144,180 Jd. Factory Overhead-Making Department 11,880 Factory Overhead-Packing Department 9,810 Accumulated Depreciation 21,690 Factory Overhead-Making Department 2,250 Factory Overhead-Packing Department 900 Prepaid Insurance 3,150 Work in Process-Making Department 31,050 Work in Process-Packing Department 34,310 Factory Overhead-Making Department 31,050 Factory Overhead-Packing Department 34,310 g. Factory Overhead-Packing Department x 187,740 Factory Overhead-Making Department x 187,740 Th. Finish Finished Goods 295,470 Work in Process-Packing Department X 295,470 i. 296,550 Cost of Goods Sold Finished Goods 296,550 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 $ $1
