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:

Finished Goods	7,200
Work in Process-Spinning Department	1,000
Work in Process-Tufting Department	2,400
Materials	4,300

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, $80,000

Materials requisitioned for use:

Fiber-Spinning Department, $42,000

Carpet backing-Tufting Department, $34,600

Indirect materials-Spinning Department, $3,000

Indirect materials-Tufting Department, $2900

Labor used:

Direct labor-Tufting Department, $17,800

Indirect labor-Spinning Department, $11,700

Indirect labor-Tufting Department, 11,800

Depreciation charged on fixed assets:

Spinning Department, $5,300

Tufting Department, $3,500

Expired prepaid factory insurance:

Spinning Department, $1,300

Tufting Department, $1,000

Applied factory overhead:

Spinning Department, $21,500
		Tufting Department, $18,850
	31	Production costs transferred from Spinning Department to Tufting Department, $85,000
	31	Production costs transferred from Tufting Department to Finished Goods, $152,600
	31	Cost of goods sold during the period, $155,300

	Required:
	1. Compute the January 31 balances of the inventory accounts.*