Instructions Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yam. 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 $6,200 Work in Process-Spinning Department 1,100 Work in Process-Tufting Department Materials 2,700 4,200 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, $81.200 2 Materials requisitioned for use: 31 Fiber-Spinning Department, $43,000 Carpet backing-Tufting Department, $34,200 Indirect materials-Spinning Department, $3.500 Indirect materials-Tutting Department, $2,800 Labor used: Direct labor-Spinning Department, $27,600 Direct labor-Tutting Department. $17,900 Instructions 31 31 31 " Indirect materials-Spinning Department, $3,500 Indirect materials-Tufting Department, $2,800 Labor used: Direct labor-Spinning Department, $27,600 Direct labor-Tufting Department, $17,900 Indirect labor-Spinning Department, $11,800 Indirect labor-Tutting Department, $11,700 Depreciation charged on fixed assets: Spinning Department, $5.300 Tufting Department, $3,700 Expired prepaid factory insurance: Spinning Department, $1,300 Tufting Department, $1,100 31 Applied factory overhead: Spinning Department, $22,200 Tufting Department, $18,950 31 Production costs transferred from Spinning Department to Tufting Department, $86,000 31. 31 Production costs transferred from Tufting Department to Finished Goods, $150,400 Cost of goods sold during the period, $153,400 1 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 joumals do not use lines for spaces or journal explanations. Every line on a joumal 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. "Enter your amounts in positive value. CHART OF ACCOUNTS Port Ormond Carpet Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 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 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense Chart of Accounts Journal 1. Joumalize 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 S FAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST RE DEBIT CREDIT ASSETS LIABILITIES EQUITY Check My Work Previous Next