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 $8,400 Work in Process-Spinning Department 1,600 Work in Process-Tufting Department 2,100 Materials 4,500 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, $84,300 2 Materials requisitioned for use: Fiber-Spinning Department, $42,600 Carpet backing-Tufting Department, $34,500 Indirect materials-Spinning Department, $4,000 Indirect materials-Tufting Department, $2,500 31 Labor used: Direct labor-Spinning Department, $27,200 Direct labor-Tufting Department, $18,600 Indirect labor-Spinning Department, $12,200 Indirect labor-Tufting Department, $11,800 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, $1,000 31 Applied factory overhead: Spinning Department, $23,100 Tufting Department, $18,150 31 Production costs transferred from Spinning Department to Tufting Department, $86,000 31 Production costs transferred from Tufting Department to Finished Goods, $150,000 31 Cost of goods sold during the period, $154,500 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 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 . 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 JOURNALACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 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 $