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 $5,040 Work in Process-Making 1,960 Work in Process-Packing 2,550 Materials 1,110 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: $62,810 a. Materials purchased on account b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $41,490 14,430 1,620 580 C. Labor used: Direct labor-Making Department $29,640 20,010 Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department 5,740 10,290 d. Depreciation charged on fixed assets: Making Department $5,410 Packing Department 4,470 e. Expired prepaid factory insurance: Making Department $1,030 410 Packing Department f. Applied factory overhead: Making Department $14,150 15,630 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 $85,530 $134,600 $135,100 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 Debit Credit a. Materials Accounts Payable b. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Materials C. Work Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Wages Payable d. Factory Overhead-Making Department Factory Overhead-Packing Department Accumulated Depreciation e. Factory Overhead-Making Department Factory Overhead-Packing Department Prepaid Insurance f. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department g. Work in Process-Packing Department Work in Process-Making Department h. Finished Goods Work in Process-Packing Department i. 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. Factory Overhead-Making Department Credit Factory Overhead-Packing Department Debit