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 $30,140 Work in Process-Making 11,710 Work in Process-Packing 15,260 Materials 6,620 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: $375,340 a. Materials purchased on account b. Materials requisitioned for use Phosphate-Making Department $247,940 86,240 9,700 3,480 Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department c. Labor used Direct labor-Making Department Direct labor-Packing Department $177,140 119,560 34,300 61,500 Indirect labor-Making Department Indirect labor-Packing Department d. Depreciation charged on fixed assets $32,340 26,710 Making Department Packing Department e. Expired prepaid factory insurance Making Department Packing Department f. Applied factory overhead Making Department nakina n et $6,130 2,450 $84,530 nnnn $84,530 93,390 f. Applied factory overhead Making Department Packing Department 9. 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: $511,070 $804,340 $807,280 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. Debit Credit Item a. Account 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 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 9. Work in Process-Packing Department Work in Process-Making Department 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 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 Feedback