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	$8,300
Work in Process-Spinning Department	2,000
Work in Process-Tufting Department	2,600
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, $82,000
	2	Materials requisitioned for use:
		Fiber-Spinning Department, $42,600
		Carpet backing-Tufting Department, $34,700
		Indirect materials-Spinning Department, $3,300
		Indirect materials-Tufting Department, $2,900
	31	Labor used:
		Direct labor-Spinning Department, $26,300
		Direct labor-Tufting Department, $17,200
		Indirect labor-Spinning Department, $12,500
		Indirect labor-Tufting Department, $11,900
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,100
	31	Expired prepaid factory insurance:
		Spinning Department, $1,000
		Tufting Department, $800
	31	Applied factory overhead:
		Spinning Department, $22,400
		Tufting Department, $18,250
	31	Production costs transferred from Spinning Department to Tufting Department, $90,000
	31	Production costs transferred from Tufting Department to Finished Goods, $153,200
	31	Cost of goods sold during the period, $158,000

	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.

Chart of Accounts

CHART OF ACCOUNTS

Port Ormond Carpet Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Spinning Department
142	Work in Process-Tufting Department
151	Factory Overhead-Spinning Department
152	Factory Overhead-Tufting Department
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
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 Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Supplies Expense
540	Administrative Expenses
561	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense

Journal

Shaded cells have feedback.

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.

Question not attempted.

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JOURNAL

ACCOUNTING EQUATION

Score: 0/346

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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Points:

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Feedback

Check My Work

1. Remember that there are three different types of inventory: materials, work in process, and finished goods. Each department has a Work in Process account to track the costs that were accumulated in that department.