1. 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	$13,500
   Work in ProcessMaking	6,790
   Work in ProcessPacking	7,350
   Materials	5,100

   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		$149,800
   b.	Materials requisitioned for use
   		PhosphateMaking Department	$105,700
   		PackagingPacking Department	31,300
   		Indirect materialsMaking Department	4,980
   		Indirect materialsPacking Department	1,530
   c.	Labor used
   		Direct laborMaking Department	$32,400
   		Direct laborPacking Department	40,900
   		Indirect laborMaking Department	15,400
   		Indirect laborPacking Department	18,300
   d.	Depreciation charged on fixed assets
   		Making Department	$10,700
   		Packing Department	7,900
   e.	Expired prepaid factory insurance
   		Making Department	$2,000
   		Packing Department	1,500
   f.	Applied factory overhead
   		Making Department	$32,570
   		Packing Department	30,050
   g.	Production costs transferred from Making Department to Packing Department		$166,790
   h.	Production costs transferred from Packing Department to Finished Goods		$263,400
   i.	Cost of goods sold during the period		$265,200

   Required:

   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.

   Item	Account	Debit	Credit
   a.
   b.
   c.
   d.
   e.
   f.
   g.
   h.
   i.

   2. Compute the July 31 balances of the inventory accounts.

   Materials	$
   Work in ProcessMaking Department	$
   Work in ProcessPacking Department	$
   Finished Goods	$

   3. Compute the July 31 balances of the factory overhead accounts.

   Factory OverheadMaking Department	$
   Factory OverheadPacking Department	$

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