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 Work in Process-Making Work in Process-Packing Materials Departmental accounts are maintained for factory overheed, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $8,730 3,390 4,420 1,920 $108,770 b. Materials requisitioned tor use Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $71,850 24,990 2,810 1,010 c. Labor used Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department $51,330 34,650 9,940 17,820 d. Depreciation charged on fixed assets Making Department Packing Department $9,370 7,740 e. Expired prepaid factory insurance Making Department Packing Department . Applied factory overhead $1,780 710 Making Department $24,500 27,070 $148,110 $233,090 $233,950 Packing Department g. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods Cost of goods sold during the period 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. tem Account Debit Credit Materials 108,770 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 1,920 | X 148, 1101 x 233,090X 8,730 | X Feedback Check My Work 1. Remember that there are three different types of inventory, materials, work in process, and finished goods. Each department has a work in pro that were accumulated in that department. 2 and 3. Set up T accounts to help determine the hainn