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	$12,180
Work in ProcessMaking	4,730
Work in ProcessPacking	6,170
Materials	2,670

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		$151,670
b.	Materials requisitioned for use:
		PhosphateMaking Department	$100,190
		PackagingPacking Department	34,850
		Indirect materialsMaking Department	3,920
		Indirect materialsPacking Department	1,410
c.	Labor used:
		Direct laborMaking Department	$71,580
		Direct laborPacking Department	48,310
		Indirect laborMaking Department	13,860
		Indirect laborPacking Department	24,850
d.	Depreciation charged on fixed assets:
		Making Department	$13,070
		Packing Department	10,790
e.	Expired prepaid factory insurance:
		Making Department	$2,480
		Packing Department	990
f.	Applied factory overhead:
		Making Department	$34,160
		Packing Department	37,740
g.	Production costs transferred from Making Department to Packing Department		$206,510
h.	Production costs transferred from Packing Department to Finished Goods		$325,020
i.	Cost of goods sold during the period		$326,210

Required:

1. Journalize the entries to record the operations. If an amount box does not require an entry, leave it blank.

Item	Account	Debit	Credit
a.	Accounts PayableFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 2	fill in the blank 3
	Accounts PayableFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 5	fill in the blank 6
b.	Accounts PayableCost of Goods SoldFinished GoodsMaterials ExpenseWork in Process-Making Department	fill in the blank 8	fill in the blank 9
	Accounts PayableAccounts ReceivableCost of Goods SoldMaterialsWork in Process-Packing Department	fill in the blank 11	fill in the blank 12
	Accounts PayableCashCost of Goods SoldFactory Overhead-Making DepartmentMaterials	fill in the blank 14	fill in the blank 15
	Accounts PayableAccounts ReceivableCost of Goods SoldFactory Overhead-Packing DepartmentMaterials	fill in the blank 17	fill in the blank 18
	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 20	fill in the blank 21
c.	Accounts PayableCost of Goods SoldMaterialsWages PayableWork in Process-Making Department	fill in the blank 23	fill in the blank 24
	Accounts PayableCost of Goods SoldMaterialsWages PayableWork in Process-Packing Department	fill in the blank 26	fill in the blank 27
	Accounts PayableCashFactory Overhead-Making DepartmentMaterialsWages Expense	fill in the blank 29	fill in the blank 30
	Cost of Goods SoldFactory Overhead-Packing DepartmentMaterialsWages ExpenseWages Payable	fill in the blank 32	fill in the blank 33
	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentWages PayableWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 35	fill in the blank 36
d.	Accounts PayableAccumulated DepreciationFactory Overhead-Making DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 38	fill in the blank 39
	Accounts PayableAccumulated DepreciationFactory Overhead-Packing DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 41	fill in the blank 42
	Accumulated DepreciationCashFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentWork in Process-Packing Department	fill in the blank 44	fill in the blank 45
e.	Factory Overhead-Making DepartmentInsurance ExpenseMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 47	fill in the blank 48
	Factory Overhead-Packing DepartmentInsurance ExpensePrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 50	fill in the blank 51
	Accounts PayableFactory Overhead-Making DepartmentPrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 53	fill in the blank 54
f.	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making Department	fill in the blank 56	fill in the blank 57
	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Packing Department	fill in the blank 59	fill in the blank 60
	Accounts PayableFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 62	fill in the blank 63
	Accounts PayableCost of Goods SoldFactory Overhead-Packing DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 65	fill in the blank 66
g.	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 68	fill in the blank 69
	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 71	fill in the blank 72
h.	Accounts ReceivableFactory Overhead-Packing Dept.Finished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 74	fill in the blank 75
	Factory Overhead-Packing Dept.Finished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 77	fill in the blank 78
i.	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 80	fill in the blank 81
	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 83	fill in the blank 84

2. Compute the July 31 balances of the inventory accounts.

Materials	$fill in the blank 85
Work in ProcessMaking Department	$fill in the blank 86
Work in ProcessPacking Department	$fill in the blank 87
Finished Goods	$fill in the blank 88

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

Factory OverheadMaking Department	$fill in the blank 89	CreditDebit
Factory OverheadPacking Department	$fill in the blank 91	CreditDebit