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PR 3 - 1 A Entries for process costing Obj. 1 , 3 2 . Materials January 3 1 balance, $ 4 6 , 5
PR A Entries for process costing
Obj.
Materials January balance, $
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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 Port Ormond Carpet Company had the following inventories:
Finished Goods
Work in ProcessSpinning Department Work in ProcessTufting Department
Materials
$
Departmental accounts are maintained for factory overhead, and both have zero balances on January Manufacturing operations for January are summarized as follows: a Materials purchased on account
b Materials requisitioned for use: FiberSpinning Department Carpet backingTufting Department Indirect materialsSpinning Department Indirect materialsTufting Department
c
Labor used: Direct laborSpinning Department
Direct laborTufting Department................................................. Indirect laborSpinning Department Indirect laborTufting Department
d Depreciation charged on fixed assets: Spinning Department Tufting Department
e Expired prepaid factory insurance: Spinning Department Tufting Department
f Applied factory overhead: Spinning Department Tufting Department g Production costs transferred from Spinning Department to Tufting Department h Production costs transferred from Tufting Department to Finished Goods i Cost of goods sold during the period
Instructions Journalize the entries to record the operations, identifying each entry by letter. Compute the January balances of the inventory accounts. Compute the January balances of the factory overhead accounts
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