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	$6,000
Work in Process-Spinning Department	1,300
Work in Process-Tufting Department	2,100
Materials	4,800

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, $81,300
	2	Materials requisitioned for use:
		Fiber-Spinning Department, $42,000
		Carpet backing-Tufting Department, $34,000
		Indirect materials-Spinning Department, $3,300
		Indirect materials-Tufting Department, $2,500
	31	Labor used:
		Direct labor-Spinning Department, $26,800
		Direct labor-Tufting Department, $18,700
		Indirect labor-Spinning Department, $11,500
		Indirect labor-Tufting Department, $11,700
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,300
	31	Expired prepaid factory insurance:
		Spinning Department, $1,200
		Tufting Department, $1,100
	31	Applied factory overhead:
		Spinning Department, $21,700
		Tufting Department, $18,400
	31	Production costs transferred from Spinning Department to Tufting Department, $86,500
	31	Production costs transferred from Tufting Department to Finished Goods, $153,600
	31	Cost of goods sold during the period, $155,200

	Required:
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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
2.	Compute the January 31 balances of the inventory accounts.*
3.	Compute the January 31 balances of the factory overhead accounts.*
	*Enter your amounts in positive value.

Entries for process cost system Instructions Chart of Accounts Journal Final Questions Instructions Chart of Accounts 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 Entries for process cost system Instructions Chart of Accounts Journal Final Questions Instructions Chart of Accounts 171 Supplies 540 Administrative Expenses 172 Prepaid Insurance 561 Depreciation Expense-Factory 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 ry 311 Common Stock Instructions Chart of Accounts 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 Instructions Chart of Accounts Journal Final Questions Instructions Chart of Accounts Journal 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 Instructions Chart of Accounts Journal 20 21 22 23 24 25 26 27 28 UCLIONS nal Instructions Chart of Accounts X Journal 20 Final Questions 21 2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value. 22 Materials $ 23 Work in Process: 24 o Spinning Department $ 25 Tufting Department $ 26 Finished Goods $ 27 28 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: Spinning Department $ Tufting Department $