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	$29,400
Work in ProcessMaking	11,420
Work in ProcessPacking	14,890
Materials	6,450

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		$366,150
b.	Materials requisitioned for use
		PhosphateMaking Department	$241,870
		PackagingPacking Department	84,130
		Indirect materialsMaking Department	9,460
		Indirect materialsPacking Department	3,390
c.	Labor used
		Direct laborMaking Department	$172,800
		Direct laborPacking Department	116,630
		Indirect laborMaking Department	33,460
		Indirect laborPacking Department	59,990
d.	Depreciation charged on fixed assets
		Making Department	$31,550
		Packing Department	26,050
e.	Expired prepaid factory insurance
		Making Department	$5,980
		Packing Department	2,390
f.	Applied factory overhead
		Making Department	$82,460
		Packing Department	91,110
g.	Production costs transferred from Making Department to Packing Department		$498,550
h.	Production costs transferred from Packing Department to Finished Goods		$784,640
i.	Cost of goods sold during the period		$787,510

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.

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
Factory OverheadPacking Department