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 $9,720 Work in ProcessMaking 3,780 Work in ProcessPacking 4,920 Materials 2,130 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 $121,030 b. Materials requisitioned for use: PhosphateMaking Department $79,950 PackagingPacking Department 27,810 Indirect materialsMaking Department 3,130 Indirect materialsPacking Department 1,120 c. Labor used: Direct laborMaking Department $57,120 Direct laborPacking Department 38,550 Indirect laborMaking Department 11,060 Indirect laborPacking Department 19,830 d. Depreciation charged on fixed assets: Making Department $10,430 Packing Department 8,610 e. Expired prepaid factory insurance: Making Department $1,980 Packing Department 790 f. Applied factory overhead: Making Department $27,260 Packing Department 30,110 g. Production costs transferred from Making Department to Packing Department $164,790 h. Production costs transferred from Packing Department to Finished Goods $259,360 i. Cost of goods sold during the period $260,310 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. c. d. e. f. g. h. i. 2. Compute the July 31 balances of the inventory accounts. Materials $ Work in ProcessMaking Department $ Work in ProcessPacking Department $ Finished Goods $ 3. Compute the July 31 balances of the factory overhead accounts. Factory OverheadMaking Department $ Factory OverheadPacking Department $