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 $22,020 Work in Process-Making Work in Process-Packing Materials 8,560 11,150 4,830 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 b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department c. Labor used: Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department d. Depreciation charged on fixed assets: Making Department Packing Department e. Expired prepaid factory insurance: Making Department Packing Department $274,230 $181,150 63,010 7,090 2,540 $129,420 87,350 25,060 44,930 $23,630 19,510 $4,480 1,790 f. Applied factory overhead: Making Department $61,760 Packing Department 68,230 g. Production costs transferred from Making Department to Packing Department $373,390 h. Production costs transferred from Packing Department to Finished Goods $587,660 i. Cost of goods sold during the period $589,810 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 a. Accounts Payable Accounts Payable b. Accounts Payable Accounts Payable d. Account Debit Credit 301,700 Packing Department 68,230 g. Production costs transferred from Making Department to Packing Department $373,390 h. Production costs transferred from Packing Department to Finished Goods $587,660 $589,810 i. Cost of goods sold during the period 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 a. Accounts Payable Accounts Payable b. Accounts Payable Accounts Payable d. e. Debit Credit 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