Tiffany Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On July 1, Tiffany Carpet Company had the following inventories:

Finished Goods $51,200

Work in Process-Spinning Department 8,500

Work in Process-Tufting Department 23,600

Raw Materials 41,100

Departmental accounts are maintained for factory overhead and both have zero balances on

July 1. Manufacturing operations for July are summarized as follows:

A. Materials purchased on account $825,300

B. Materials requisitioned for use:

Fiber--Spinning Department $547,200

Carpet backing--Tufting Department 215,300

Indirect materials--Spinning Department 44,200

Indirect materials--Tufting Department 16,900

C. Labor used:

Direct labor--Spinning Department $234,700

Direct labor-Tufting Department 189,900

Indirect labor- Spinning Department 124,200

Indirect labor- Tufting Department 110,000

D. Depreciation charged on fixed assets:

Spinning Department $56,700

Tufting Department 32,500

E. Expired prepaid factory insurance:

Spinning Department $12,000

Tufting Department 9,000

F. Applied factory overhead:

Spinning Department $235,600

Tufting Department 169,800

G. Production costs transferred

from Spinning Department

to Tufting Department $1,021,600

H. Production costs transferred

from Tufting Department

to Finished Goods $1,590,200

I. Cost of goods sold during the period $1,600,700

Instructions:

1. Journalize the entries to record the operations, Identifying each entry by the given letter.

English (United States)

2. Compute the July 31 balances of the four inventory accounts. They are Materials, Work in Process-Spinning Dept., Work in Process-Tufting Dept., and Finished Goods.

3. Compute the July 31 balances of the two factory overhead accounts. They are Factory Overhead-Spinning Dept., and Factory Overhead-Tufting Dept.