Entries for Process Cost SystemPreston & Grover Soap Company manufactures powdereddetergent. Phosphate is placed...Entries...

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Accounting

Entries for Process Cost System
Preston & Grover Soap Company manufactures powdereddetergent. Phosphate is placed in process in the Making Department,where it is turned into granulars. The output of Making istransferred to the Packing Department, where packaging is added atthe beginning of the process. On July 1, Preston & Grover SoapCompany had the following inventories:
Finished Goods $7,010
Work in Process—Making 2,720
Work in Process—Packing 3,550
Materials 1,540
Departmental accounts are maintained for factory overhead, whichboth have zero balances on July 1.
Manufacturing operations for July are summarized as follows:
a. Materials purchased on account $87,320
b. Materials requisitioned for use
Phosphate—Making Department $57,680
Packaging—Packing Department 20,060
Indirect materials—Making Department 2,260
Indirect materials—Packing Department 810
c. Labor used
Direct labor—Making Department $41,210
Direct labor—Packing Department 27,820
Indirect labor—Making Department 7,980
Indirect labor—Packing Department 14,310
d. Depreciation charged on fixed assets
Making Department $7,520
Packing Department 6,210
e. Expired prepaid factory insurance
Making Department $1,430
Packing Department 570
f. Applied factory overhead
Making Department $19,670
Packing Department 21,730
g. Production costs transferred from Making Departmentto Packing Department $118,900
h. Production costs transferred from PackingDepartment to Finished Goods $187,130
i. Cost of goods sold during the period $187,820
Required:
1. Journalize the entries to record theoperations, identifying each entry by letter. For a compoundtransaction, if an amount box does not require an entry, leave itblank.
Item Account Debit Credit
a.
b.
c.
d.
e.
f.
g.
h.
i.
2. Compute the July 31 balances of theinventory accounts.
Materials $
Work in Process—Making Department $
Work in Process—Packing Department $
Finished Goods $
3. Compute the July 31 balances of the factoryoverhead accounts. If required, use the minus sign to indicate acredit balance.
Factory Overhead—Making Department $
Factory Overhead—Packing Department $

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Item Account Debit Credit a Materials 87320 Accounts payable 87320 b work in processMaking Deptt 57680 work in processpcking Deptt 20060 Factory overhead making Deptt 2260 Factory overhead packing Deptt 810 Materials 80810 c work in processMaking Deptt 41210 work in processpcking Deptt 27820 Factory overhead making Deptt 7980 Factory overhead See Answer

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In: AccountingEntries for Process Cost SystemPreston & Grover Soap Company manufactures powdereddetergent. Phosphate is placed...Entries for Process Cost SystemPreston & Grover Soap Company manufactures powdereddetergent. Phosphate is placed in process in the Making Department,where it is turned into granulars. The output of Making istransferred to the Packing Department, where packaging is added atthe beginning of the process. On July 1, Preston & Grover SoapCompany had the following inventories:Finished Goods$7,010Work in Process—Making2,720Work in Process—Packing3,550Materials1,540Departmental accounts are maintained for factory overhead, whichboth have zero balances on July 1.Manufacturing operations for July are summarized as follows:a.Materials purchased on account$87,320b.Materials requisitioned for usePhosphate—Making Department$57,680Packaging—Packing Department20,060Indirect materials—Making Department2,260Indirect materials—Packing Department810c.Labor usedDirect labor—Making Department$41,210Direct labor—Packing Department27,820Indirect labor—Making Department7,980Indirect labor—Packing Department14,310d.Depreciation charged on fixed assetsMaking Department$7,520Packing Department6,210e.Expired prepaid factory insuranceMaking Department$1,430Packing Department570f.Applied factory overheadMaking Department$19,670Packing Department21,730g.Production costs transferred from Making Departmentto Packing Department$118,900h.Production costs transferred from PackingDepartment to Finished Goods$187,130i.Cost of goods sold during the period$187,820Required:1. Journalize the entries to record theoperations, identifying each entry by letter. For a compoundtransaction, if an amount box does not require an entry, leave itblank.ItemAccountDebitCredita.b.c.d.e.f.g.h.i.2. Compute the July 31 balances of theinventory accounts.Materials$Work in Process—Making Department$Work in Process—Packing Department$Finished Goods$3. Compute the July 31 balances of the factoryoverhead accounts. If required, use the minus sign to indicate acredit balance.Factory Overhead—Making Department$Factory Overhead—Packing Department$

Finished Goods	$7,010
Work in Process—Making	2,720
Work in Process—Packing	3,550
Materials	1,540

a.	Materials purchased on account		$87,320
b.	Materials requisitioned for use
		Phosphate—Making Department	$57,680
		Packaging—Packing Department	20,060
		Indirect materials—Making Department	2,260
		Indirect materials—Packing Department	810
c.	Labor used
		Direct labor—Making Department	$41,210
		Direct labor—Packing Department	27,820
		Indirect labor—Making Department	7,980
		Indirect labor—Packing Department	14,310
d.	Depreciation charged on fixed assets
		Making Department	$7,520
		Packing Department	6,210
e.	Expired prepaid factory insurance
		Making Department	$1,430
		Packing Department	570
f.	Applied factory overhead
		Making Department	$19,670
		Packing Department	21,730
g.	Production costs transferred from Making Departmentto Packing Department		$118,900
h.	Production costs transferred from PackingDepartment to Finished Goods		$187,130
i.	Cost of goods sold during the period		$187,820

Materials	$
Work in Process—Making Department	$
Work in Process—Packing Department	$
Finished Goods	$

Factory Overhead—Making Department	$
Factory Overhead—Packing Department	$