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	$27,310
Work in ProcessMaking	10,610
Work in ProcessPacking	13,830
Materials	5,990

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		$340,100
b.	Materials requisitioned for use:
		PhosphateMaking Department	$224,660
		PackagingPacking Department	78,140
		Indirect materialsMaking Department	8,790
		Indirect materialsPacking Department	3,150
c.	Labor used:
		Direct laborMaking Department	$160,510
		Direct laborPacking Department	108,340
		Indirect laborMaking Department	31,080
		Indirect laborPacking Department	55,720
d.	Depreciation charged on fixed assets:
		Making Department	$29,300
		Packing Department	24,200
e.	Expired prepaid factory insurance:
		Making Department	$5,550
		Packing Department	2,220
f.	Applied factory overhead:
		Making Department	$76,590
		Packing Department	84,630
g.	Production costs transferred from Making Department to Packing Department		$463,090
h.	Production costs transferred from Packing Department to Finished Goods		$728,830
i.	Cost of goods sold during the period		$731,490

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. b. A d. III d. e. f. III III II III II II II II g. h. h. i. 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 Factory Overhead-Packing Department $