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 $10,580 Work in Process-Making 4,110 Work in Process-Packing 5,360 Materials 2,320 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: $131,750 a. Materials purchased on account b. Materials requisitioned for use: Phosphate-Making Department $87,030 30,270 Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department 3,410 1,220 C. Labor used: Direct labor-Making Department $62,180 41,970 12,040 21,590 Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department d. Depreciation charged on fixed assets: Making Department Packing Department $11,350 9,370 21,390 d. Depreciation charged on fixed assets: Making Department $11,350 9,370 Packing Department e. Expired prepaid factory insurance: Making Department $2,150 860 $29,670 Packing Department f. Applied factory overhead: Making Department Packing Department g. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods i. Cost of goods sold during the period 32,780 $179,400 $282,340 $283,370 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 a. Materials 131,750 Accounts Payable 131,750 b. Work in Process-Making Department 87,030 Work in Process-Packing Department 30,270 Factory Overhead-Making Department 3,410 Work in Process-Packing Department 30,270 Factory Overhead-Making Department 3,410 Factory Overhead-Packing Department 1,220 Materials 121,930 C. Work in Process-Making Department 62,180 Work in Process-Packing Department 41,970 Factory Overhead-Making Department 12,040 Factory Overhead-Packing Department 21,590 Wages Payable 137,780 d. Factory Overhead-Making Department 11,350 Factory Overhead-Packing Department 9,370 Accumulated Depreciation 20,720 e. Factory Overhead-Making Department 2,150 Factory Overhead-Packing Department 860 Prepaid Insurance 3,010 f. Work in Process-Making Department 29,670 Work in Process-Packing Department 32,780 Factory Overhead-Making Department 29,670 32,780 Work in Process-Packing Department Factory Overhead-Making Department 29,670 Factory Overhead-Packing Department 32,780 9. Work in Process-Packing Department 179,400 Work in Process-Making Department 179,400 h. Finished Goods 282,340 Work in Process-Packing Department 282,340 Cost of Goods Sold 283,370 Finished Goods 283,370 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 indicate a credit balance. Factory Overhead-Making Department Factory Overhead-Packing Department
