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$8,400Work in Process-Spinning Department1,600Work in Process-Tufting Department2,100Materials4,500Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:

Jan.1Materials purchased on account, $84,3002Materials requisitioned for use:FiberSpinning Department, $42,600Carpet backingTufting Department, $34,500IndirectmaterialsSpinningDepartment, $4,000Indirect materialsTufting Department, $2,50031Labor used:Direct laborSpinning Department, $27,200Direct laborTufting Department, $18,600Indirect laborSpinning Department, $12,200Indirect laborTufting Department, $11,80031Depreciation charged on fixed assets:Spinning Department, $5,300Tufting Department, $3,30031Expired prepaid factory insurance:Spinning Department, $1,200Tufting Department, $1,00031Applied factory overhead:Spinning Department, $23,100Tufting Department, $18,15031Production costs transferred from Spinning Department to Tufting Department, $86,00031Production costs transferred from Tufting Department to Finished Goods, $150,00031Cost of goods sold during the period, $154,500Required: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 exact wording of account titles.2.Compute the January 31 balances of the inventory accounts.3.Compute the January 31 balances of the factory overhead accounts.

CHART OF ACCOUNTSPort Ormond Carpet CompanyGeneral LedgerASSETS110Cash121Accounts Receivable125Notes Receivable126Interest Receivable131Materials141Work in Process-Spinning Department142Work in Process-Tufting Department151Factory Overhead-Spinning Department152Factory Overhead-Tufting Department161Finished Goods171Supplies172Prepaid Insurance173Prepaid Expenses181Land191Factory192Accumulated Depreciation-Factory

LIABILITIES210Accounts Payable221Utilities Payable231Notes Payable236Interest Payable251Wages Payable

EQUITY311Common Stock340Retained Earnings351Dividends

REVENUE410Sales610Interest Revenue