Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories: Finished Goods $28,170 Work in ProcessMaking 10,950 Work in ProcessPacking 14,270 Materials 6,180 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $350,830 b. Materials requisitioned for use PhosphateMaking Department $231,750 PackagingPacking Department 80,610 Indirect materialsMaking Department 9,070 Indirect materialsPacking Department 3,250 c. Labor used Direct laborMaking Department $165,570 Direct laborPacking Department 111,750 Indirect laborMaking Department 32,060 Indirect laborPacking Department 57,480 d. Depreciation charged on fixed assets Making Department $30,230 Packing Department 24,960 e. Expired prepaid factory insurance Making Department $5,730 Packing Department 2,290 f. Applied factory overhead Making Department $79,010 Packing Department 87,290 g. Production costs transferred from Making Department to Packing Department $477,690 h. Production costs transferred from Packing Department to Finished Goods $751,810 i. Cost of goods sold during the period $754,560 Required: 1. Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank. Item Account Debit Credit a. Materials 350,830 Accounts Payable 350,830 b. Work in Process-Making Department 231,750 Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Materials c. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department Wages Payable d. Factory Overhead-Making Department Factory Overhead-Packing Department Accumulated Depreciation e. Factory Overhead-Making Department Factory Overhead-Packing Department Prepaid Insurance f. Work in Process-Making Department Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department g. Work in Process-Packing Department Work in Process-Making Department h. Finished Goods Work in Process-Packing Department i. Cost of Goods Sold Finished Goods 2. Compute the July 31 balances of the inventory accounts. Materials $ Work in ProcessMaking Department $ Work in ProcessPacking Department $ Finished Goods $ 3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. Factory OverheadMaking Department $ Credit Factory OverheadPacking Department $ Debit