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	$13,500
Work in ProcessMaking	6,790
Work in ProcessPacking	7,350
Materials	5,100

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	$149,800
b.	Materials requisitioned for use
		PhosphateMaking Department	$105,700
		PackagingPacking Department	31,300
		Indirect materialsMaking Department	4,980
		Indirect materialsPacking Department	1,530
c.	Labor used
		Direct laborMaking Department	$32,400
		Direct laborPacking Department	40,900
		Indirect laborMaking Department	15,400
		Indirect laborPacking Department	18,300
d.	Depreciation charged on fixed assets
		Making Department	$10,700
		Packing Department	7,900
e.	Expired prepaid factory insurance
		Making Department	$2,000
		Packing Department	1,500
f.	Applied factory overhead
		Making Department	$32,570
		Packing Department	30,050
g.	Production costs transferred from Making Department to Packing Department	$166,790
h.	Production costs transferred from Packing Department to Finished Goods	$263,400
i.	Cost of goods sold during the period	$265,200

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.	Accounts PayableAccounts ReceivableFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 2
	Accounts PayableCashFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department		fill in the blank 4
b.	Accounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Making Department	fill in the blank 6	fill in the blank 7
	Accounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Packing Department	fill in the blank 9	fill in the blank 10
	Accounts PayableAccounts ReceivableCost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterials	fill in the blank 12	fill in the blank 13
	Accounts PayableAccounts ReceivableCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterials	fill in the blank 15	fill in the blank 16
	Accounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Packing Department	fill in the blank 18	fill in the blank 19
c.	Cost of Goods SoldFinished GoodsMaterialsWages ExpenseWages PayableWork in Process-Making Department	fill in the blank 21	fill in the blank 22
	Cost of Goods SoldFinished GoodsMaterialsWages ExpenseWages PayableWork in Process-Packing Department	fill in the blank 24	fill in the blank 25
	Accounts PayableAccounts ReceivableCashFactory Overhead-Making DepartmentFinished GoodsMaterials	fill in the blank 27	fill in the blank 28
	Accounts ReceivableCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWages Payable	fill in the blank 30	fill in the blank 31
	Cost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterialsWages PayableWork in Process-Making Department	fill in the blank 33	fill in the blank 34
d.	Accounts PayableAccumulated DepreciationDepreciation ExpenseFactory Overhead-Making DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 36	fill in the blank 37
	Accounts PayableAccumulated DepreciationDepreciation ExpenseFactory Overhead-Packing DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 39	fill in the blank 40
	Accounts PayableAccumulated DepreciationCashFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentWork in Process-Packing Department	fill in the blank 42	fill in the blank 43
e.	Factory Overhead-Making DepartmentFinished GoodsInsurance ExpenseMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 45	fill in the blank 46
	Factory Overhead-Packing DepartmentFinished GoodsInsurance ExpensePrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 48	fill in the blank 49
	Accounts PayableFactory Overhead-Making DepartmentFinished GoodsPrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 51	fill in the blank 52
f.	Cost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making Department	fill in the blank 54	fill in the blank 55
	Cost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Packing Department	fill in the blank 57	fill in the blank 58
	Cost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 60	fill in the blank 61
	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 63	fill in the blank 64
g.	Cost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 66
	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department		fill in the blank 68
h.	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 70
	Accounts ReceivableFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department		fill in the blank 72
i.	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 74
	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department		fill in the blank 76

2. Compute the July 31 balances of the inventory accounts.

Materials	$fill in the blank 77
Work in ProcessMaking Department	$fill in the blank 78
Work in ProcessPacking Department	$fill in the blank 79
Finished Goods	$fill in the blank 80

3. Compute the July 31 balances of the factory overhead accounts.

Factory OverheadMaking Department	$fill in the blank 81	CreditDebit
Factory OverheadPacking Department	$fill in the blank 83	CreditDebit