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 8,560 Work in Process-Packing 11,150 Materials 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: a. Materials purchased on account $274,230 b. Materials requisitioned for use: Phosphate-Making Department $181,150 Packaging-Packing Department 63,010 Indirect materials-Making Department 7,090 Indirect materials-Packing Department 2,540 c. Labor used: Direct labor-Making Department $129,420 Direct labor-Packing Department 87,350 Indirect labor-Making Department 25,060 Indirect labor-Packing Department 44,930 d. Depreciation charged on fixed assets: Making Department $23,630 Packing Department 19,510 e. Expired prepaid factory insurance: Making Department $4,480 Packing Department 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 $589,810Requlred: 1. Jeurnalize the entries tn record the operations, Identifying each entry by letter. If an amount box dues not require an entry, leave it blank. - m m m - mm - a {I 3 \fi. Cost of Goods Sold 589,810 Finished Goods 589,810 V 2. Compute the July 31 balances of the inventory accounts. Materials 25,270 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 Credit Factory Overhead-Packing Department Debit