Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phasphate 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 $25,830 Work in Process-Making 10,040 Work in Process-Packing 13,080 Materials 5,670 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: $321,720 a. Materials purchased on account b. Materials requisitioned for use Phosphate-Making Department $212,520 Packaging-Packing Department Indirect materials-Making Department Indirect materials -Packing Department 73,920 8,320 2,980 C. Labor used Direct labor-Making Department $151,830 Direct labor-Packing Department 102,480 Indirect labor-Making Department 29,400 Indirect labor-Packing Department 52,710 d. Depreciation charged on fixed assets Making Department $27,720 Packing Department 22,890 e. Expired prepaid factory insurance Making Department Packing Department 2,100 f. Applied factory overhead Making Department $72,450 Packing Department 80,050 Production costs transferred from Making Department to Packing 9. $438,060 Department h. Production costs transferred from Packing Department to Finished Goods $689,430 i. Cost of goods sold during the period $691,950 $5,250 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. Item Account Debit Credit a. b. d. III g. h. i. 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. If required, use the minus sign to indicate a credit balance. Factory Overhead-Making Department Factory Overhead-Packing Department $