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 Work in Process-Making Work in Process-Packing Materials $26,320 10,230 13,330 5,780 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materiais purchased on account $327,850 b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $216,570 75,330 8,470 3,040 c. Labor used: Direct labor-Making Department Direct labor-Packing Department $154,720 104,430 Indirect labor-Making Department 29,960 Burkina nanartment 53,710 d. Depreciation charged on fixed assets: Making Department $28,250 Packing Department e. Expired prepaid factory insurance: Making Department Packing Department 23,330 $5,350 2,140 f. Applied factory overhead: 1 Making Department $73,830 Packing Department 81,580 g. Production costs transferred from Making Department to Packing Department $446,400 h. Production costs transferred from Packing Department to Finished Goods 1. Cost of goods sold during the period $702,560 $705,130 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 B Materials Accounts Payable Account Debit Credit 327,850 327,850 v b. Work in Process-Making Department 216,570 Work in Process-Packing Department 75.330 Factory Overhead-Making Department Factory Overhead-Packing Department 9. Work in Process-Making Department Work in Process-Packing Department h. Finished Goods 1. Work in Process-Packing Department Cost of Goods Sold Finished Goods x 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. Factory Overhead-Making Department Factory Overhead-Packing Department Credit Debit