Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 & Graver Soap Company had the following inventories: Finished Goods $13,500 Work in Process-Making 6,790 Work in Process-Packing 7,350 Materials 5,100 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 $149,800 b. Materials requisitioned for use: Phosphate-Making Department $105,700 Packaging-Packing Department 31,300 Indirect materials-Making Department 4,980 Indirect materials-Packing Department 1,530 Direct labor-Making Department $32,400 Direct labor-Packing Department 40,900 Indirect labor-Making Department 15,400 Indirect labor-Packing Department. 18,300 d. Depreciation charged on fixed assets: Making Department $10,700 Packing Department 7,900 e. Expired prepaid factory insurance: Making Department $2,000 Packing Packing Department 1,500 f. Applied factory overhead: Making Department $32,570 30,050 Packing Department g. Production costs transferred from Making Department to Packing Department $166,790 c. Labor used: f. Applied factory overhead: Making Department $32,570 Packing Department 30,050 g. Production costs transferred from Making Department to Packing Department $166,790 h. Production costs transferred from Packing Department to Finished Goods $263,400 $265,200 i. Cost of goods sold during the period Required: 1. Journalize the entries to record the operations. If an amount box does not require an entry, leave it blank. Credit Debit Account 0 00 -- ---- --- --- ----- --- 0 10 10-01 ---- --- 0 0 0 000 6000 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Planning Guide For Information Systems Security Auditing

Authors: National State Auditors Association And The U. S. General Accounting Office

1st Edition

1508456720, 978-1508456728

More Books

Students also viewed these Accounting questions

Question

Describe the concept of decatastrophizing as a treatment procedure.

Answered: 1 week ago