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	$26,570
Work in ProcessMaking	10,320
Work in ProcessPacking	13,460
Materials	5,830

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		$330,910
b.	Materials requisitioned for use
		PhosphateMaking Department	$218,590
		PackagingPacking Department	76,030
		Indirect materialsMaking Department	8,550
		Indirect materialsPacking Department	3,070
c.	Labor used
		Direct laborMaking Department	$156,170
		Direct laborPacking Department	105,410
		Indirect laborMaking Department	30,240
		Indirect laborPacking Department	54,220
d.	Depreciation charged on fixed assets
		Making Department	$28,510
		Packing Department	23,540
e.	Expired prepaid factory insurance
		Making Department	$5,400
		Packing Department	2,160
f.	Applied factory overhead
		Making Department	$74,520
		Packing Department	82,340
g.	Production costs transferred from Making Department to Packing Department		$450,580
h.	Production costs transferred from Packing Department to Finished Goods		$709,130
i.	Cost of goods sold during the period		$711,720

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.

Item	Account	Debit	Credit
a.	Materials
	Accounts Payable
b.	Work in Process-Making Department
	Work in Process-Packing Department
	Factory Overhead-Making Department
	Factory Overhead-Packing Department
	Materials
c.	Work in Process-Making Department
	Work in Process-Packing Department
	Factory Overhead-Making Department
	Factory Overhead-Packing Department
	Wages Payable
d.	Factory Overhead-Making Department
	Factory Overhead-Packing Department
	Accumulated Depreciation
e.	Factory Overhead-Making Department
	Factory Overhead-Packing Department
	Prepaid Insurance
f.	Work in Process-Making Department
	Work in Process-Packing Department
	Factory Overhead-Making Department
	Factory Overhead-Packing Department
g.	Work in Process-Packing Department
	Work in Process-Making Department
h.	Finished Goods
	Work in Process-Packing Department
i.	Cost of Goods Sold
	Finished Goods

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	$	Credit
Factory OverheadPacking Department	$	Debit