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	$6,500
Work in Process-Spinning Department	1,200
Work in Process-Tufting Department	2,300
Materials	4,100

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, $84,700

2

Materials requisitioned for use:

Fiber-Spinning Department, $42,800

Carpet backing-Tufting Department, $34,000

Indirect materials-Spinning Department, $3,400

Indirect materials-Tufting Department, $2,700

31

Labor used:

Direct labor-Spinning Department, $26,600

Direct labor-Tufting Department, $17,600

Indirect labor-Spinning Department, $11,900

Indirect labor-Tufting Department, $11,800

31

Depreciation charged on fixed assets:

Spinning Department, $5,400

Tufting Department, $4,000

31

Expired prepaid factory insurance:

Spinning Department, $1,100

Tufting Department, $800

31

Applied factory overhead:

Spinning Department, $22,200

Tufting Department, $18,950

31

Production costs transferred from Spinning Department to Tufting Department, $89,500

31

Production costs transferred from Tufting Department to Finished Goods, $151,400

31

Cost of goods sold during the period, $154,200

A. 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.*** This Journal should have 28 rows in total***

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

B. . 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________

C. . Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value.

Factory Overhead:__________
Spinning Department__________
Tufting Department__________

	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