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	$11,440
Work in ProcessMaking	4,450
Work in ProcessPacking	5,790
Materials	2,510

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		$142,480
b.	Materials requisitioned for use
		PhosphateMaking Department	$94,120
		PackagingPacking Department	32,740
		Indirect materialsMaking Department	3,680
		Indirect materialsPacking Department	1,320
c.	Labor used
		Direct laborMaking Department	$67,240
		Direct laborPacking Department	45,380
		Indirect laborMaking Department	13,020
		Indirect laborPacking Department	23,340
d.	Depreciation charged on fixed assets
		Making Department	$12,280
		Packing Department	10,140
e.	Expired prepaid factory insurance
		Making Department	$2,330
		Packing Department	930
f.	Applied factory overhead
		Making Department	$32,090
		Packing Department	35,450
g.	Production costs transferred from Making Department to Packing Department		$194,000
h.	Production costs transferred from Packing Department to Finished Goods		$305,320
i.	Cost of goods sold during the period		$306,440

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.

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. If required, use the minus sign to indicate a credit balance.

Factory OverheadMaking Department	$
Factory OverheadPacking Department	$