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Entries for process cost system Instructions Chart of Accounts Journal Final Questions Instructions Port Ormond 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 January 1, Port Ormond Carpet Company had the following inventories: Finished Goods $8,200 1,800 Work in Process-Spinning Department Work in Process-Tufting Department 2,900 Materials 4,800 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Jan 1 Materials purchased on account, $82,700 2 Materials requisitioned for use: Fiber-Spinning Department, $43,800 Carpet backing-Tufting Department, $34,900 Indirect materials-Spinning Department, $3,200 Entries for process cost system Instructions Chart of Accounts Journal Final Questions Instructions Carpet backing-Tufting Department, $34,900 Indirect materials-Spinning Department, $3,200 Indirect materials-Tufting Department, $2,800 31 Labor used: Direct labor-Spinning Department, $27,000 Direct labor-Tufting Department, $17,400 Indirect labor-Spinning Department, $11,600 Indirect labor-Tufting Department, $11,700 31 Depreciation charged on fixed assets: Spinning Department, $5,200 31 Tufting Department, $3,100 Expired prepaid factory insurance: Spinning Department, $1,500 Tufting Department, $1,000 Applied factory overhead: Spinning Department, $21,850 31 Entries for process cost system Instructions Chart of Accounts Journal Final Questions Instructions 31 Expired prepaid factory insurance: Spinning Department, $1,500 Tufting Department, $1,000 Applied factory overhead: Spinning Department, $21,850 31 31 Tufting Department, $18,350 Production costs transferred from Spinning Department to Tufting Department, $86,000 Production costs transferred from Tufting Department to Finished Goods, $152,800 Cost of goods sold during the period, $157,900 31 31 Required: Instructions Chart of Accounts Journal Final Questions Chart of Accounts CHART OF ACCOUNTS Port Ormond Carpet Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 121 Accounts Receivable 125 Notes Receivable EXPENSES 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 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 161 Finished Goods 534 Supplies Expense 171 Sunplies 540 Administrative Expenses eBook Show Me How Entries for process cost system Instructions Chart of Accounts Journal Final Questions Chart of Accounts 152 Factory Overhead-Tufting Department 533 Utilities Expense 534 Supplies Expense 161 Finished Goods 171 Supplies 540 Administrative Expenses 172 Prepaid Insurance 561 Depreciation Expense-Factory 173 Prepaid Expenses 590 Miscellaneous Expense 181 Land 710 Interest Expense 191 Factory 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable Entries for process cost system Instructions Chart of Accounts Journal Final Questions Journal 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 CDUUN SHOW CHOW Entries for process cost system Instructions Chart of Accounts Journal Final Questions E Journal 7 8 9 10 11 12 13 14 15 16 17 18 19 20 71 eBook Show Me How Entries for process cost system Instructions Chart of Accounts Journal Final Questions Journal 16 17 18 19 20 21 22