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:

Finished Goods	$5,410
Work in ProcessMaking	2,100
Work in ProcessPacking	2,740
Materials	1,190

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		$67,410
b.	Materials requisitioned for use:
		PhosphateMaking Department	$44,530
		PackagingPacking Department	15,490
		Indirect materialsMaking Department	1,740
		Indirect materialsPacking Department	620
c.	Labor used:
		Direct laborMaking Department	$31,810
		Direct laborPacking Department	21,470
		Indirect laborMaking Department	6,160
		Indirect laborPacking Department	11,040
d.	Depreciation charged on fixed assets:
		Making Department	$5,810
		Packing Department	4,800
e.	Expired prepaid factory insurance:
		Making Department	$1,100
		Packing Department	440
f.	Applied factory overhead:
		Making Department	$15,180
		Packing Department	16,770
g.	Production costs transferred from Making Department to Packing Department		$91,780
h.	Production costs transferred from Packing Department to Finished Goods		$144,450
i.	Cost of goods sold during the period		$144,980

Required:

1. Journalize the entries to record the operations, identifying each entry by letter. If an amount box does not require an entry, leave it blank.

Item	Account	Debit	Credit
a.		fill in the blank 2	fill in the blank 3
		fill in the blank 5	fill in the blank 6
b.		fill in the blank 8	fill in the blank 9
		fill in the blank 11	fill in the blank 12
		fill in the blank 14	fill in the blank 15
		fill in the blank 17	fill in the blank 18
		fill in the blank 20	fill in the blank 21
c.		fill in the blank 23	fill in the blank 24
		fill in the blank 26	fill in the blank 27
		fill in the blank 29	fill in the blank 30
		fill in the blank 32	fill in the blank 33
		fill in the blank 35	fill in the blank 36
d.		fill in the blank 38	fill in the blank 39
		fill in the blank 41	fill in the blank 42
		fill in the blank 44	fill in the blank 45
e.		fill in the blank 47	fill in the blank 48
		fill in the blank 50	fill in the blank 51
		fill in the blank 53	fill in the blank 54
f.		fill in the blank 56	fill in the blank 57
		fill in the blank 59	fill in the blank 60
		fill in the blank 62	fill in the blank 63
		fill in the blank 65	fill in the blank 66
g.		fill in the blank 68	fill in the blank 69
		fill in the blank 71	fill in the blank 72
h.		fill in the blank 74	fill in the blank 75
		fill in the blank 77	fill in the blank 78
i.		fill in the blank 80	fill in the blank 81
		fill in the blank 83	fill in the blank 84

2. Compute the July 31 balances of the inventory accounts.

Materials	$fill in the blank 85
Work in ProcessMaking Department	$fill in the blank 86
Work in ProcessPacking Department	$fill in the blank 87
Finished Goods	$fill in the blank 88

3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance.

Factory OverheadMaking Department	$fill in the blank 89
Factory OverheadPacking Department	$fill in the blank 91