M7 CNOW Homework eBook Show Me How 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 granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories: Finished Goods $28,910 Work in Process-Making 11,230 Work in Process-Packing 14,640 Materials 6,350 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $360,020 . Materials requisitioned for use: Phosphate-Making Department $237,820 Packaging-Packing Department 82,720 Indirect materials-Making Department 9,310 Indirect materials-Packing Department 3,340 c. Labor used: Direct labor-Making Department $169,910 Direct labor-Packing Department 114,680 Indirect labor-Making Department 32,900 Indirect labor-Packing Department 58,990 d. Depreciation charged on fixed assets: Making Department $31,020 Packing Department 25,620 e. Expired prepaid factory insurance: Making Department $5,880 Packing Department 2,350f. Applied factory overhead: Making Department $81,080 Packing Department 89,580 9. Production costs transferred from Making Department to Packing Department $490,210 h. Production costs transferred from Packing Department to Finished Goods $771,510 i. Cost of goods sold during the period $774,330 Required: 1. Journalize the entries to record the operations, identifying each entry by letter. If an amount box does not require an entry, leave it blank. Item Account Debit Credit a. Accounts Receivable X Accounts Payable b. Cost of Goods Sold X Cost of Goods Sold X Accounts Receivable X Accounts Receivable X Cost of Goods Sold X C. Finished Goods X Materials X Accounts Receivable X Factory Overhead-Packing Department Materials Xd. Accumulated Depreciation X Depreciation Expense X Factory Overhead-Making Department X e. Factory Overhead-Making Department Factory Overhead-Packing Department Accounts Payable X f . Factory Overhead-Packing Department X Work in Process-Packing Department Materials X Work in Process-Making Department X g. Cost of Goods Sold . X Factory Overhead-Making Department X h. Cost of Goods Sold X Accounts Receivable X Cost of Goods Sold Cost of Goods Sold X 2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making DepartmentWork in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. Factory Overhead-Making Department Factory Overhead-Packing Department