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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	$23,740
Work in ProcessMaking	9,230
Work in ProcessPacking	12,020
Materials	5,210

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		$295,680
b.	Materials requisitioned for use
		PhosphateMaking Department	$195,320
		PackagingPacking Department	67,940
		Indirect materialsMaking Department	7,640
		Indirect materialsPacking Department	2,740
c.	Labor used
		Direct laborMaking Department	$139,540
		Direct laborPacking Department	94,180
		Indirect laborMaking Department	27,020
		Indirect laborPacking Department	48,440
d.	Depreciation charged on fixed assets
		Making Department	$25,480
		Packing Department	21,040
e.	Expired prepaid factory insurance
		Making Department	$4,830
		Packing Department	1,930
f.	Applied factory overhead
		Making Department	$66,590
		Packing Department	73,570
g.	Production costs transferred from Making Department to Packing Department		$402,600
h.	Production costs transferred from Packing Department to Finished Goods		$633,620
i.	Cost of goods sold during the period		$635,940

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

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