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 $8,200 Work in Process-Spinning Department 1,800 Work in Process-Tufting Department bent 2,900 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, $82,700 2 Materials requisitioned for use: Fiber-Spinning Department, $43,800 Carpet backing-Tufting Department, $34,900 Indirect materials-Spinning Department, $3,200 Indirect materials-Tufting Department, $2,800 31 Labor used: 31 Direct labor-Spinning Department, $27,000 Direct labor-Tufting Department, $17,400 Indirect labor-Spinning Department, $11,600 Indirect labor-Tufting Department, $11,700 Depreciation charged on fixed assets: Spinning Department, $5,200 Tufting Department, $3,100 Expired prepaid factory insurance: Spinning Department, $1,500 Tufting Department, $1,000 Applied factory overhead: Spinning Department, $21,850 Tufting Department, $18,350 31 31 31 31 31 Production costs transferred from Spinning Department to Tufting Department, $86,000 Production costs transferred from Tufting Department to Finished Goods, $152,800 Cost of goods sold during the period, $157,900 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 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.* *Enter your amounts in positive value. 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 131 Materials EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 141 Work in Process-Spinning 142 Work in Process-Tufting 532 Insurance Expense 151 Factory Overhead-Spinning 152 Factory Overhead-Tufting 533 Utilities Expense 161 Finished Goods 534 Supplies Expense 171 Supplies 540 Administrative Expenses 561 Depreciation Expense-Factory 172 Prepaid Insurance 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 Earnings 351 Dividends 390 Income Summary 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. PAGE 10 JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value. Materials Work in Process: $ Spinning Department Tufting Department Finished Goods $ 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: Spinning Department Tufting Department