Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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:

28 entries into the journal

Finished Goods $6,200
Work in Process-Spinning Department 1,100
Work in Process-Tufting Department 2,700
Materials 4,200

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, $81,200
2 Materials requisitioned for use:
FiberSpinning Department, $43,000
Carpet backingTufting Department, $34,200
Indirect materialsSpinning Department, $3,500
Indirect materialsTufting Department, $2,800
31 Labor used:
Direct laborSpinning Department, $27,600
Direct laborTufting Department, $17,900
Indirect laborSpinning Department, $11,800
Indirect laborTufting 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
Required:
1. Journalize the 28 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.

Compute the January 31 balances of the inventory accounts.

Materials selector 1
  • Debit
  • Credit
Work in Process:
Spinning Department selector 2
  • Debit
  • Credit
Tufting Department selector 3
  • Debit
  • Credit
Finished Goods selector 4
  • Debit
  • Credit
3.

Compute the January 31 balances of the factory overhead accounts.

3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers.

Factory Overhead:
Spinning Department selector 1
  • Debit
  • Credit
Tufting Department selector 2
  • Debit
  • Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: Euston Quah, E.J. Mishan

5th Edition

0415350379, 9780415350372

More Books

Students also viewed these Accounting questions