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Finished Goods 263,400 Work in Process Packing Department Cost of Goods Sald 265,200 Finished Goods 2. Compute the July 31 balances of the inventory accounts. Materials 11,390 Work in Process-Making Department Work in Process-Packing Department 166,790 X Finished Goods 263,400 x 3. Compute the July 31 balances of the factory overhead accounts Factory Overhead-Making Department Debit Credit 29,230 x Factory Overhead-Packing Department Feed Cho My Won 1. Remember that there are three different types of inventory materials, work in process, and shed goods. Each department has a work in process count to track the show accumulated in that department 2 and 3 Set up T accounts to help determine the balances from the transactions ove 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 graders. The output of Making is transferred to the Packing Department, where packaging in added at the beginning of the process. On July 1, Preston A. Grover Soap Company had the following inventories Finished Goods Work In Process-Making Work in Process-Packing Materials $13,500 6,790 7,350 5,100 Departmental accounts are maintained for factory overhead, which both have zero balances on July 3 Manufacturing operations for uly are summarized as follows: $149,800 a. Materials purchased on account b. Materials requisitioned for use Phosphate-Ming Department Packaging-Packing Department Indirect materials -- Maling Department Indirect materials--Packing Department Labor used Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department $105,700 31,300 4.980 1.539 $32,400 40,900 15.400 18,300 $10,700 7.900 Indirect labor-Packing Department d. Depreciation charged on fixed its Making Department Packing Department e. Expired prepaid factory insurance Making Department Packing Department 1. Applied factory overhead Making Department Pacing Department Q Production cost transferred from Making Department to Packing Department Production costs transferred from Paling Department to Finished Goods Cost of goods sold during the period 12.000 1,500 332,570 30.050 $166.790 5263,400 $265,200 Required: 1. Journaliona entres to record the operations, deri each entry by letter. For a compound transaction, an amount box does not require an entry, bank Account Debit Item Credit Material 3 149,800 Accounts Payable Work in Process Making Department 105,700 EVE 105,00 31,300 4.980 Work in Process Pading Department Factory Overhead Making Department Factory Overhead Packing Department Materias 1,530 Work in Process Making Department 32,400 40,900 15,400 Work in Process-Packing Department Factory Overhead Making Department Factory Overhead-Packing Department Wages Payable 18,300 V d. Factory Overhead Making Department 10,700 Factory Overhead-Packing Department - 7,900 Accumulated Depreciation 2,000 Factory Overhead-Making Department Factory Overhead-Packing Department . 1,500 Prepaid Insurance 32,570 Work in Process Making Department TULISTA 3.70 Work in Proces-Packing Department 30,050 Factory Overhead Making Department Factory Overhead Packing Department 166,790 Work in Process Packing Department Work in Process-Moking Department h Finished Goods 263,400 Work in Process Packing Department Cost of Goods Sold 265,200 Finished Goods 2. Compute the July 31 balances of the inventory accounts 11,390 Materials Work in Process-Making Department Work in Process --Pacing Department Finished Goods 166,790 X 263,400X 3. Compute the July 31 balances of the factory overhead accounts Factory Overhead-Making Department X Debit 1 Item 2 Account Materials Accounts Payable Krecord purchase of materials on accounts) Work in Process-Making Department Work in Process Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Materials Krecord transfer of material for use) Work in Process Making Department Work in Process Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Wages Payable record use of labor) d Factory Overhead-Making Department Factory Overhead-Packing Department Accumulated Depreciation record depreciation on asset) Factory Overhead-Making Department Factory Overhead-Packing Department Prepaid Insurance record expiration of factory insurance prepaid) Work in Process Making Department Work in Process Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Krecord application of factory overheads! Work in Process-Packing Department Work in Process Making Department transfer of cost from Making Dept so Packing 8 h Finished Goods Work in Process Packing Department transfer of cost from Packing Dept to Finished Cost of Goods Sold Finished Goods to record cost of goods sold) 2 Balance - July 31 Materials (5.100-149.00-143.510) Work in Process-Making Department (6,790+1.00 Work in Process-Packing Department (7,350-31. Finished Goods (13.500-2.63.400-2.65.200) Balance-July Factory Overhead-Making Department (4.980-19 Factory Overhead-Packing Department (1.33011