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I really just need help with questions 2 and 3. Buena Montana Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department,
I really just need help with questions 2 and 3.
Buena Montana 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, Buena Montana Carpet Company had the following inventories: Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: \begin{tabular}{|c|c|c|} \hline a. & Materials purchased on account & $410,000 \\ \hline \multirow[t]{5}{*}{ b. } & Materials requisitioned for use: & \\ \hline & Fiber-Spinning Department & $225,500 \\ \hline & Carpet backing_-Tufting Department & 90,200 \\ \hline & Indirect materials-Spinning Department & 37,700 \\ \hline & Indirect materials-Tufting Department & 29,800 \\ \hline \multirow[t]{5}{*}{ c. } & Labor used: & \\ \hline & Direct labor-Spinning Department & $151,700 \\ \hline & Direct labor-Tufting Department & 80,300 \\ \hline & Indirect labor-Spinning Department & 14,900 \\ \hline & Indirect labor-Tufting Department & 7,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multirow{2}{*}{ d. } & \multicolumn{2}{|l|}{ Depreciation charged on fixed assets: } \\ \hline & Spinning Department & $10,200 \\ \hline & Tufting Department & 7,000 \\ \hline \multirow[t]{3}{*}{ e. } & Expired prepaid factory insurance: & \\ \hline & Spinning Department & $1,600 \\ \hline & Tufting Department & 820 \\ \hline \multirow[t]{3}{*}{ f. } & Applied factory overhead: & \\ \hline & Spinning Department & $64,600 \\ \hline & Tufting Department & 45,100 \\ \hline g. & \begin{tabular}{l} Production costs transferred from Spinning Department \\ to Tufting Department \end{tabular} & $448,500 \\ \hline h. & \begin{tabular}{l} Production costs transferred from Tufting Department \\ to Finished Goods \end{tabular} & $661,900 \\ \hline i. & Cost of goods sold during the period & $639,100 \\ \hline \end{tabular} INSTRUCTIONS 1. Journalize the entries to record the operations, identifying each entry by letter. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ General Journal } \\ \hline Date & \multirow[t]{2}{*}{ Description } & \multirow[t]{2}{*}{ Post Ref } & \multicolumn{2}{|r|}{ Debit } & \multicolumn{2}{|r|}{ Credit } \\ \hline & & & & ge 1 & & \\ \hline Jan1 & Materials & & & 410,000 & & \\ \hline & Accounts Payable & & & & $ & 410,000 \\ \hline Jan2 & Work in Process-Spinning Department & & $ & 225,500 & & \\ \hline & Work in Process-Tufting Department & & $ & 90,200 & & \\ \hline & Factory Overhead-Spinning Department & & $ & 37,700 & & \\ \hline & Factory Overhead-Tufting Department & & $ & 29,800 & & \\ \hline & Materials & & & & $ & 383,200 \\ \hline Jan31 & Work in Process-Spinning Department & & $ & 151,700 & & \\ \hline & Work in Process-Tufting Department & & $ & 80,300 & & \\ \hline & Factory Overhead-Spinning Department & & $ & 14,900 & & \\ \hline & Factory Overhead-Tufting Department & & $ & 7,500 & & \\ \hline & Wages Payable & & & & $ & 254,400 \\ \hline & Factory Overhead-Spinning Department & & $ & 10,200 & & \\ \hline & Factory Overhead-Tufting Department & & $ & 7,000 & & \\ \hline & Accumulated Depreciation & & & & $ & 17,200 \\ \hline & Factory Overhead-Spinning Department & & $ & 1,600 & & \\ \hline & Factory Overhead-Tufting Department & & $ & 820 & & \\ \hline & Prepaid Insurance & & & & $ & 2,420 \\ \hline & Work in Process-Spinning Department & & $ & 64,600 & & \\ \hline & Work in Process-Tufting Department & & $ & 45,100 & & \\ \hline & Factory Overhead-Spinning Department & & & & $ & 64,600 \\ \hline & Factory Overhead-Tufting Department & & & & $ & 45,100 \\ \hline & Work in Process-Tufting Department & & $ & 448,500 & & \\ \hline & Work in Process-Spinning Department & & & & s & 448,500 \\ \hline & Finished Goods & & $ & 661,900 & & \\ \hline & Work in Process-Tufting Department & & & & $ & 661,900 \\ \hline & Cost of Goods Sold & & $ & 639,100 & & \\ \hline & Finished Goods & & & & & 639,100 \\ \hline \end{tabular}Step by Step Solution
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