Question
FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department. where it is spun into yam. The output of the
FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department. where it is spun into yam. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On October 1, FloorMate Carpet Company had the following inventories: Finished Goods $5,600 Work in Process-Spinning Department 1,500 Work in Process-Tufting Department Materials 2,300 4,800 Departmental accounts are maintained for factory overhead, and both have zero balances on October 1. Manufacturing operations for October are summarized as follows: Oct. 1 Materials purchased on account, $84,900 2 31 Materials requisitioned for use: Fiber-Spinning Department, $43,600 Carpet backing-Tufting Department, $34,100 Indirect materials-Spinning Department, $3,200 Indirect materials-Tufting Department, $2.900 Labor used: Direct labor-Spinning Department, $26,300 Direct labor-Tufting Department, $17,900 Indirect labor-Spinning Department, $12,100 Indirect labor-Tufting Department, $11,700 31 Depreciation charged on fixed assets: Spinning Department, $5,300 Tufting Department, $3,400 31 Expired prepaid factory insurance: Spinning Department, $1.200 Tufting Department, $1,000 31 Applied factory overhead Spinning Department, $22,000 Tufting Department, $18,700 31 Production costs transferred from Spinning Department to Tufting Department. $88,000 31 Production costs transferred from Tufting Department to Finished Goods $159,000 31 Cost of goods sold during the period, $160.500
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