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 $26,200 Work in Process-Making 10,180 Work in Process-Packing 13,270 Materials 5,750 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 $326,320 b. Materials requisitioned for use: Phosphate-Making Department $215,560 74,980 Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department 8,430 3,020 c. Labor used: Direct labor-Making Department $154,000 Direct labor-Packing Department 103,940 c. Labor used: Direct labor-Making Department $154,000 Direct labor-Packing Department 103,940 Indirect labor-Making Department 29,820 Indirect labor-Packing Department 53,460 d. Depreciation charged on fixed assets: Making Department $28,120 Packing Department 23,220 e. Expired prepaid factory insurance: Making Department $5,330 2,130 Packing Department f. Applied factory overhead: Making Department $73,490 Packing Department 81,200 $444,320 $699,280 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: $701,840 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 326,320 Accounts Payable 326,320 b. Work in Process-Making Department 215,560 Work in Process-Packing Department 74,980 Factory Overhead-Making Department 8,430 Factory Overhead-Packing Department 3,020 Materials 301,990 C. Work in Process-Making Department 154,000 Work in Process-Packing Department 103,940 Factory Overhead-Making Department 29,820 Factory Overhead-Packing Department 53,460 Wages Payable 341,220 d. Factory Overhead-Making Department 28,120 Factory Overhead-Packing Department 23,220 Accumulated Depreciation 51,340 e. Factory Overhead-Making Department 5,330 Factory Overhead-Packing Department 2,130 Prepaid Insurance 7,460 f. Work in Process-Making Department 73,490 Work in Process-Packing Department 81,200 Factory Overhead-Making Department 73,490 Factory Overhead-Packing Department 81,200 g. Work in Process-Packing Department 444,320 Work in Process-Making Department 444,320 h. Finished Goods 699,280 Work in Process-Packing Department 699,280 i. Cost of Goods Sold 701,840 Finished Goods 701,840 2. Compute the July 31 balances of the inventory accounts. Materials 30,080 Work in Process-Making Department 92,920 X 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 Factory Overhead-Packing Department