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 Work in Process-Making Work in Process-Packing Materials $16,970 6,600 8,600 3,730 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 b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department $211,420 $139,660 48,580 Indirect materials-Making Department Indirect materials-Packing Department c. Labor used: Direct labor-Making Department 5,460 1,960 $99,770 Direct labor-Packing Department 67,340 Indirect labor-Making Department 19,320 Indirect labor-Packing Department 34,640 d. Depreciation charged on fixed assets: Making Department $18,220 Packing Department 15,040 e. Expired prepaid factory insurance: Making Department Packing Department $3,450 1,380 f. Applied factory overhead: Making Department $47,610 Packing Department 52,610 g. Production costs transferred from Making Department to Packing Department $287,870 h. Production costs transferred from Packing Department to Finished Goods $453,050 $454,710 i. Cost of goods sold during the period Required: 1. Journalize the entries to record the operations, identifying each entry by letter. If an amount box does not require an entry, leave it blank. Item Account Debit Credit c. d. e. 5 11 1011 101 101 38 2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making Department Work in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicat- Factory Overhead-Making Department Factory Overhead-Packing Department