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: $8,300 Finished Goods Work in Process-Spinning Department 2,000 Work in Process-Tufting Department 2,600 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 2 Materials purchased on account, $82,000 Materials requisitioned for use: Fiber-Spinning Department, $42,600 Carpet backing-Tufting Department, $34,700 Indirect materials-Spinning Department, $3,300 Indirect materials-Tufting Department, $2,900 31 Labor used: 31 31 Direct labor-Spinning Department, $26,300 Direct labor-Tufting Department, $17,200 Indirect labor-Spinning Department, $12,500 Indirect labor-Tufting Department, $11,900 Depreciation charged on fixed assets: Spinning Department, $5,300 Tufting Department, $3,100 Expired prepaid factory insurance: Spinning Department, $1,000 Tufting Department, $800 Applied factory overhead: Spinning Department, $22,400 Tufting Department, $18,250 Production costs transferred from Spinning Department to Tufting Department, $90,000 Production costs transferred from Tufting Department to Finished Goods, $153,200 Cost of goods sold during the period, $158,000 31 31 31 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 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. 2. Compute the January 31 balances of the inventory accounts.* 3. Compute the January 31 balances of the factory overhead accounts.* PAGE 10 JOURNAL Score: 250/346 ACCOUNTING EQUATION DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES EQUITY DATE Jan. 1 ASSETS f 1 Materials 82,000.00 2 Accounts Payable 82,000.00 1 3 Jan. 2 Work in Process-Spinning Department 42,600.00 1 4. Work in Process-Tufting Department 34,700.00 1 5 5 Factory Overhead-Spinning Department 3,300.00 1 6 Factory Overhead-Tufting Department 2,900.00 f 7 Materials 8 Jan. 31' Work in Process-Spinning Department 9 Work in Process-Tufting Department 10 Factory Overhead-Spinning Department 11 Factory Overhead-Tufting Department 12 Wages Payable Jan. 31 Factory Overhead-Spinning Department 13 14 Factory Overhead-Tufting Department 15 Accumulated Depreciation-Factory 16 Jan. 31 Factory Overhead-Spinning Department 17 Factory Overhead-Tufting Department 18 Prepaid Insurance 19 Jan. 31 Work in Process-Spinning Department 20 Work in Process-Tufting Department 21 Factory Overhead-Spinning Department 22 Factory Overhead-Tufting Department 23 Jan. 31 Work in Process-Tufting Department 24 Work in Process-Spinning Department 25 Jan. 31 Finished Goods 26 Work in Process-Tufting Department Jan. 31Cost of Goods Sold 27 28 Finished Goods 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 $ $ Points: 0/8 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: Spinning Department Tufting Department $ $ Points: 0/4 Feedback Check My Work 2. & 3. Set up T accounts to help determine the balances from the transactions above