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 Soop Company had the following inventories: Finished Goods $18,700 Work in Process -- Making 7,270 Work in Process --Packing 9,470 Materials 4,100 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: Materials purchased on account $232,860 b. Materials requisitioned for use Phosphate Mal Department $153,020 Packaging-Packing Department 53,500 Indirect materials Making Department 6,020 Indirect materials--Packing Department 2,160 C. Labor used Direct labor-Making Department $109,900 Direct labor --Packing Department 74,180 Indirect labor -- Making Department 21,280 Indirect labor-Packing Department 38,150 d. Depreciation charged on fixed assets Making Department $20,060 Darbina anaitment 16 520 d. Depreciation charged on fixed assets Making Department $20,060 Packing Department 16,570 e. Expired prepaid factory Insurance Making Department $3,800 Packing Department 1,520 f. Applied factory overhead Making Department $52,440 Packing Department 57,940 0. Production costs transferred from Making Department to Packing Department $317,070 h. Production costs transferred from Packing Department to Finished Goods $499,020 1. Cost of goods sold during the period $500,840 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 Account Debit Credit Item Materials Accounts Payable b. Work In Process Making Department Work in Process-Packing Department Factory Overhead-Making Department eBook Show Me HOW b. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Materials C. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Wages Payable d. Factory Overhead-Making Department Factory Overhead-Packing Department Accumulated Depreciation Factory Overhead-Making Department Factory Overhead-Packing Department Prepaid Insurance Work in Process-Making Department f. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department 9. Work in Process-Packing Department Work in Process-Making Department Finished Goods Work in Process-Packing Department 1. Cost of Goods Sold Finished Goods 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 Credit Factory Overhead-Packing Department Debit
