Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Port Ormond Carpet Company manufactures carpets. Fber is placed in process in the Spinning Department, where it is spun into yarn. The output of the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Port Ormond Carpet Company manufactures carpets. Fber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tutting Department, where carpet backing is added at the begnning of the process and the process is completed. On January 1, Port Ormond Carpet Compary had the following inventories: Departmental accounts are maintained for factory overhead, and both have zero balances on danuary 1. Manulacturing cperations for January are summarized as follows: 31 Labor used: Direct labor-Spinning Department, $27,000 Direct labor-Tutting Department, $17,400 Indirect labor-Spinning Department, $11,600 Indirect labor-Tufting Department, $11,700 31 Depreciation charged on fixed assets: Spinning Department, 55,200 Fufting Department, $3,100 31 Expired prepaid factory insurance: Spinning Department, $1,500 Tufting Department, $1,000 31 Applied factory overhead: Spinning Department, $21,850 Tutting Dopartment, $18,350 31 Production costs transferred from Spinning Department to Tufting Department, $86,000 31 Production costs transferted from Tufting Department to Finished Goods, $152,800 31. Cost of goods sold during the period, $157,900 Required: 31. Depreciation charged on fixed assets: Spinning Department, $5,200 Tufting Department, 83,100 31 Expired prepaid tactory insurance: Spinning Department, $1,500 Tutting Department, $1,000 31 Applied factory overhead: Spinning Department, \$21,850 Tufting Department, $18,350 31 Production costs transferred from Spinning Department to Tuting Department, $86,000 31. Production costs transterred from Tutting Department to Finished Goods, $152,800 31 Cost of goods sold during the period, $157,900 Requlred: 1. Joumalize the entries to record the cperations, using the dates provided with the summary of manulacfuring opevations. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts. CHART OF ACCOUNTS Port Ormond Carpet Company 172 Prepaid Insurance 173 Prepaid Expenses . 181 Land 191 Factory 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense 192 Accumulated Depreciation-Factory LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 390 Income Summary 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. General Journal instructions 2. Compute the January 31 balances of the inventory accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting For Business Decisions

Authors: Colin Drury

2nd Edition

1861527705, 978-1861527707

More Books

Students also viewed these Accounting questions

Question

What is the purpose of a costbenefit analysis?

Answered: 1 week ago