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 ransterred to the Tuting Department, where carpot backing is added at the beginning of the process and the process is completed, On January 1, Port Ormond Carpet Cornpary had thollowing inventories: Instructions Indirect materials-Iutting Department, $2,800 31 Labor used: Direct labor-Spinning Department, $27,600 Direct labor-Tufting Department, $17,900 Indirect labor-Spinning Department, $11,800 Indirect labor-Tufting Department, $11,700 31 Depreciation charged on fixed assets: Spinning Department, $5,300 Tufting Department, $3,700 31 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 Production costs transferred from Tufting Department to Finished Goods, $150,400 31 Cost of goods sold during the period, $153,400 Instructions Spinning Department, $1,300 Tutting 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, 586,000 31 Production costs transferred from Tufting Department to Finished Goods, $150,400 31 Cost of goods sold during the poriod, $153,400 Pequired: 1. Joumalize the antries to record the operations, using the dafes provided with the summary of manufacturing operations. Fiefer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for spaces or joumal explanations. Every line on a journal page is used for debit or credit entries. Do not add explamabions or skip a line behween journal entries. CNOW joumals will automaticaly indent a credif entry when a credit arnount is entered. 2. Compute the January 31 balances of the inventary accounts." 3. Compute the danuary 31 balances of the factory overhead accounts." Chart of Accounts CHART OF ACCOUNTS Port Ormond Carpet Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 125 Notes Receivable 126 Interest Receivable EXPENSES 131 Materials 510 Cost of Goods Sold 141 Work in Process-Spinning Department 520 Wages Expense 142 Work in Process-Tufting Department 531 Selling Expenses 151 Factory Overhead-Spinning Department 532 Insurance Expense 152 Factory Overhead-Tufting Department 533 Utilities Expense 161 Finished Goods 534 Supplies Expense 171 Supplies 540 Administrative Expenses 172 Prepaid Insurance 561 Depreciation Expense-Factory Chart of Accounts 173 Prepaid Expenses 590 Miscellaneous Expense 181 Land 710 Interest Expense 191 Factory 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 Eamings 351 Dividends 390 Income Summary 1. dournaite the entries to tecord the cperafions, using the dates provided with the summary of manulactuning operations: Feler to the chart of accounts for the exact wonding of the accoum Bties. CNOW joumals do not use lines for spaces or joumat explanabions. Every ine on a joumal page is used for debit or crede entries. Do not add axplanations or skip a fine behwent poumal entries. CNOW journals wis automaticalify indent a credit entry whon a credit amount is entered. 2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value. 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value
