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FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning

FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. 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 2,300
Materials 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 Materials requisitioned for use:
FiberSpinning Department, $43,600
Carpet backingTufting Department, $34,100
Indirect materialsSpinning Department, $3,200
Indirect materialsTufting Department, $2,900
31 Labor used:
Direct laborSpinning Department, $26,300
Direct laborTufting Department, $17,900
Indirect laborSpinning Department, $12,100
Indirect laborTufting 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
Required:
1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.
2. Compute the October 31 balances of the inventory accounts.
3. Compute the October 31 balances of the factory overhead accounts.
CHART OF ACCOUNTS
FloorMate Carpet Company
General Ledger
ASSETS
110 Cash
121 Accounts Receivable
125 Notes Receivable
126 Interest Receivable
131 Materials
141 Work in Process-Spinning Department
142 Work in Process-Tufting Department
151 Factory Overhead-Spinning Department
152 Factory Overhead-Tufting Department
161 Finished Goods
171 Supplies
172 Prepaid Insurance
173 Prepaid Expenses
181 Land
191 Factory
192 Accumulated Depreciation-Factory
LIABILITIES
210 Accounts Payable
221 Utilities Payable
231 Notes Payable
236 Interest Payable
251 Wages Payable
EQUITY
311 Common Stock
340 Retained Earnings
351 Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Wages Expense
531 Selling Expenses
532 Insurance Expense
533 Utilities Expense
534 Supplies Expense
540 Administrative Expenses
561 Depreciation Expense-Factory
590 Miscellaneous Expense
710 Interest Expense

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