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Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is

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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 granders. 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 $11.930 Work in Process-Making 4,640 Work in Process-Packing 6,040 Materials 2,620 Departmental accounts are maintained for factory overhead, which Manufacturing operations for July are summarized as follows: a. Materials purchased on account $145,500 b. Materials requisitioned for use Phosphate-Making Department 19,160 Packaging-Packing Department 34,140 Indirect materials -- Making Department 3,640 Indirect materials-Packing Department 1,380 c. Labor used: Direct labor-Making Department $70,130 Direct labor-Packing Department 47,340 Indirect labor-Making Department 13.500 Indirect labor-Packing Department 24,350 d. Depreciation charged on fixed assets 13,580 24,350 Indirect labor-Making Department Indirect labor-Packing Department d. Depreciation charged on fixed assets: Making Department Packing Department e. Expired prepaid factory insurance: $12,800 10,570 Making Department $2,430 970 Packing Department f. Applied factory overhead: Making Department Packing Department g. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods i. Cost of goods sold during the period Required: $33,470 36,980 $202,340 $318,450 $319,620 1. Journalize the entries to record the operations, identifying each entry by letter. If an amount box does not require an Item Account Debit Credit a. Materials Accounts Payable b. Work in Process-Making Department Debit Credit Item Account a. Materials Accounts Payable b. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Materials Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Wages Payable Factory Overhead-Making Department Factory Overhead-Packing Department Accumulated Depreciation Eartaru Ouard Malin Hannema LH17 Problem ser DOOR d. Factory Overhead-Making Department Factory Overhead-Packing Department Accumulated Depreciation Factory Overhead-Making Department Factory Overhead-Packing Department Prepaid Insurance Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Work in Process-Packing Department Work in Process-Making Department Finished Goods Work in Process-Packing Department i. Cost of Goods Sold Finished Goods Factory Overhead-Making Department Factory Overhead-Packing Department 9. Work in Process-Packing Department Work in Process-Making Department Finished Goods Work in Process-Packing Department Cost of Goods Sold Finished Goods 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. Debit Factory Overhead-Making Department Factory Overhead --Packing Department Debit

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