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: $8,400 Finished Goods Work in Process-Spinning Department 1,600 Work in Process-Tufting Department 2,100 Materials 4,500 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Materials purchased on account, $84,300 Jan 1 Materials requisitioned for use: 2 Fiber-Spinning Department, $42,600 Carpet backing-Tufting Department, $34,500 Indirect materials-Spinning Department, $4,000 Indirect materials-Tufting Department, $2,500 Instructions Indirect materials-Tufting Department, $2,500 Labor used: 31 Direct labor-Spinning Department, $27,200 Direct labor-Tufting Department, $18,600 Indirect labor-Spinning Department, $12,200 Indirect labor-Tufting Department, $11,800 Depreciation charged on fixed assets: 31 Spinning Department, $5,300 Tufting Department, $3,300 Expired prepaid factory insurance: 31 Spinning Department, $1,200 Tufting Department, $1,000 Applied factory overhead: 31 Spinning Department, $23,100 Tufting Department, $18,150 Production costs transferred from Spinning Department to Tufting Department, $86,000 31 Production costs transferred from Tufting Department to Finished Goods, $150,000 31 Instructions Expired prepaid factory insurance: 31 Spinning Department, $1,200 Tufting Department, $1,000 Applied factory overhead: 31 Spinning Department, $23,100 Tufting Department, $18,150 Production costs transferred from Spinning Department to Tufting Department, $86,000 31 Production costs transferred from Tufting Department to Finished Goods, $150,000 31 Cost of goods sold during the period, $154,500 31 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 January 31 balances of the inventory accounts.* 3. Compute the January 31 balances of the factory overhead accounts.* *Enter your amounts in positive value. 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 exact wording of account titles PAGE 10 JOURNAL POST. REF DATE DESCRIPTION DEBIT CREDIT 1 22 3 6 7 8 9 Journal 12 13 14 15 16 17 18 19 21 22 23 25 1 20 24 Journal 15 16 17 18 19 20 21 22 23 25 24 26 7 28 Final Questions 2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value. Materials $ Work in Process: Spinning Department $ Tufting Department $ Finished Goods $ 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: Spinning Department $ Tufting Department $
