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	$5,170
Work in ProcessMaking	2,010
Work in ProcessPacking	2,620
Materials	1,130

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		$64,340
b.	Materials requisitioned for use:
		PhosphateMaking Department	$42,500
		PackagingPacking Department	14,780
		Indirect materialsMaking Department	1,660
		Indirect materialsPacking Department	600
c.	Labor used:
		Direct laborMaking Department	$30,370
		Direct laborPacking Department	20,500
		Indirect laborMaking Department	5,880
		Indirect laborPacking Department	10,540
d.	Depreciation charged on fixed assets:
		Making Department	$5,540
		Packing Department	4,580
e.	Expired prepaid factory insurance:
		Making Department	$1,050
		Packing Department	420
f.	Applied factory overhead:
		Making Department	$14,490
		Packing Department	16,010
g.	Production costs transferred from Making Department to Packing Department		$87,610
h.	Production costs transferred from Packing Department to Finished Goods		$137,890
i.	Cost of goods sold during the period		$138,390

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 Process--Making Department_______

Work in Process--Packing Department_______

Finished Goods_______

3. Compute the July 31 balances of the factory overhead accounts.

Factory Overhead--Making Department_______

Factory Overhead--Packing Department_______