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Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output

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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 $10,210 Work in Process-Making 3,970 Work in Process --Packing 5,170 Materials 2,240 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. $127,160 Manufacturing operations for July are summarized as follows: a. Materials purchased on account b. Materials requisitioned for use: Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials --Packing Department $84,000 29,220 3,290 1,180 C. Labor used: Direct labor-Making Department $60,010 Direct labor-Packing Department 40,500 Indirect labor-Making Department 11,620 Indirect labor-Packing Department 20,830 d. Depreciation charged on fixed assets: Making Department $10,960 Packing Department 9,050 e. Expired prepaid factory insurance: Making Department $2,080 Packing Department 830 f. Applied factory overhead: $28,640 Making Department Packing Department 31,640 $173,140 g. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods $272,490 i. Cost of goods sold during the period $273,490 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 b. WIDT III b MIDI IDI 00 "? e. III 100 o 9. 2. Compute the July 31 balances of the inventory accounts. Materials Work in Process-Making Department all 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

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