transferred to the Tufting Department, where carpet backing is added at the beginning of Buena Montana 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 the process and the process is completed. On January 1, Buena Montana Carpet Company had the following inventories: Finished Goods $50,800 Work in Process-Spinning Department 28,700 Work in Process-Tufting Department 23,400 Materials 13,900 Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Jan. 1 2 31 31 Materials purchased on account, $410,000 Materials requisitioned for use: Fiber - Spinning Department, $225,500 Carpet backing-Tufting Department, $90,200 Indirect materials-Spinning Department, $37,700 Indirect materials, Tufting Department, $29,800 Labor used: Direct labor-Spinning Department, $151,700 Direct labor Tufting Department, $80,300 Indirect labor-Spinning Department, $14,900 Indirect labor Tufting Department, $7,500 Depreciation charged on fixed assets: Spinning Department, $10,200 Tufting Department, $7,000 Expired prepaid factory insurance: Spinning Department, $1,600 Tufting Department, 5820 Applied factory overhead: Spinning Department, $64,600 Tufting Department, $45,100 Production costs transferred from Spinning Department to Tufting Department, $448,500 Production costs transferred from Tufting Department to Finished Goods, $661,900 Cost of goods sold during the period, $639,100 31 31 31 31 31 Required: 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers. 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. CHART OF ACCOUNTS Buena Montana Carpet Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable REVENUE 410 Sales 610 Interest Revenue 131 Materials 141 Work in Process-Spinning Department 142 Work in Process-Tufting Department 151 Factory Overhead-Spinning Department 152 Factory Overhead-Tufting Department 161 Finished Goods EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expense 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expense 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers. Materials $ Work in Process: Spinning Department Tufting Department Finished Goods $ 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Factory Overhead: Spinning Department Tufting Department $