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 $23,000 Work in Process-Making 8,940 Work in Process-Packing 11,650 Materials 5,050 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 $286,480 b. Materials requisitioned for use: Phosphate ---Making Department $189,240 Packaging-Packing Department 65,820 Indirect materials-Making Department 7,410 Indirect materials ---Packing Department 2,660 c. Labor used: Direct labor-Making Department $135,200 Direct labor-Packing Department 91,260 Indirect labor-Making Department 26,180 Indirect labor-Packing Department 46,940 d. Depreciation charged on fixed assets: Making Department $24,680 y aprICIO Packing Department 20,380 e. Expired prepaid factory insurance: Making Department $4,680 Packing Department 1,870 f. Applied factory overhead: Making Department $64,520 Packing Department 71,280 9. Production costs transferred from Making Department to Packing Department $390,080 h. Production costs transferred from Packing Department to Finished Goods $613,920 1. Cost of goods sold during the period $616,170 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. d. ILI e. 9. Droving Next f. 9. h. 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 Check My Work 2 more Check My Work uses remaining, Previous Next