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 $21,650 8,410 10,960 4,750 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations foruly are summarized as follows: a. 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 $269,630 $178,110 61,950 6,970 2,500 $127,250 Direct labor-Packing Department 85,890 Indirect labor-Making Department 24,640 Indirect labor-Packing Department 44,180 Previous Next