In: Accounting
Has anyone dine this problem? it wont let me post the whole
question.
Port Ormond Carpet...
Has anyone dine this problem? it wont let me post the whole
question.
Port Ormond 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 January 1, Port Ormond
Carpet Company had the following inventories:
Finished Goods |
$62,000 |
Work in Process-Spinning Department |
35,000 |
Work in Process-Tufting Department |
28,500 |
Materials |
17,000 |
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 |
Materials purchased on account, $500,000 |
|
2 |
Materials requisitioned for use: |
|
|
Fiber—Spinning Department, $275,000 |
|
|
Carpet backing—Tufting Department, $110,000 |
|
|
Indirect materials—Spinning Department, $46,000 |
|
|
Indirect materials—Tufting Department, $39,500 |
|
31 |
Labor used: |
|
|
Direct labor—Spinning Department, $185,000 |
|
|
Direct labor—Tufting Department, $98,000 |
|
|
Indirect labor—Spinning Department, $18,500 |
|
|
Indirect labor—Tufting Department, $9,000 |
|
31 |
Depreciation charged on fixed assets: |
|
|
Spinning Department, $12,500 |
|
|
Tufting Department, $8,500 |
|
31 |
Expired prepaid factory insurance: |
|
|
Spinning Department, $2,000 |
|
|
Tufting Department, $1,000 |
|
31 |
Applied factory overhead: |
|
|
Spinning Department, $80,000 |
|
|
Tufting Department, $55,000 |
|
31 |
Production costs transferred from Spinning Department to
Tufting Department, $547,000 |
|
31 |
Production costs transferred from Tufting Department to
Finished Goods, $807,200 |
|
31 |
Cost of goods sold during the period, $795,200 |
|
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 exact wording of account titles. |
2. |
Compute the January 31 balances of the inventory accounts. |
3. |
Compute the January 31 balances of the factory overhead
accounts. |
Port Ormond 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 January 1, Port Ormond
Carpet Company had the following inventories:
Finished Goods |
$62,000 |
Work in Process-Spinning Department |
35,000 |
Work in Process-Tufting Department |
28,500 |
Materials |
17,000 |
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 |
Materials purchased on account, $500,000 |
|
2 |
Materials requisitioned for use: |
|
|
Fiber—Spinning Department, $275,000 |
|
|
Carpet backing—Tufting Department, $110,000 |
|
|
Indirect materials—Spinning Department, $46,000 |
|
|
Indirect materials—Tufting Department, $39,500 |
|
31 |
Labor used: |
|
|
Direct labor—Spinning Department, $185,000 |
|
|
Direct labor—Tufting Department, $98,000 |
|
|
Indirect labor—Spinning Department, $18,500 |
|
|
Indirect labor—Tufting Department, $9,000 |
|
31 |
Depreciation charged on fixed assets: |
|
|
Spinning Department, $12,500 |
|
|
Tufting Department, $8,500 |
|
31 |
Expired prepaid factory insurance: |
|
|
Spinning Department, $2,000 |
|
|
Tufting Department, $1,000 |
|
31 |
Applied factory overhead: |
|
|
Spinning Department, $80,000 |
|
|
Tufting Department, $55,000 |
|
31 |
Production costs transferred from Spinning Department to
Tufting Department, $547,000 |
|
31 |
Production costs transferred from Tufting Department to
Finished Goods, $807,200 |
|
31 |
Cost of goods sold during the period, $795,200 |
|
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 exact wording of account titles. |
2. |
Compute the January 31 balances of the inventory accounts. |
3. |
Compute the January 31 balances of the factory overhead
accounts. |
X
Chart of Accounts
CHART OF ACCOUNTS |
Port Ormond Carpet Company |
General Ledger |
|
ASSETS |
110 |
Cash |
121 |
Accounts Receivable |
125 |
Notes Receivable |
126 |
Interest Receivable |
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 |
171 |
Supplies |
172 |
Prepaid Insurance |
173 |
Prepaid Expenses |
181 |
Land |
191 |
Factory |
192 |
Accumulated Depreciation-Factory |
|
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 |
|
|
REVENUE |
410 |
Sales |
610 |
Interest Revenue |
|
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 |
|
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 exact wording of account titles.
(There are 28 slots for the journal entry)
2. Compute the January 31 balances of the inventory
accounts.
Materials |
|
|
Work in Process: |
|
|
• Spinning Department |
|
|
• Tufting Department |
|
|
Finished Goods |
|
|
3. Compute the January 31 balances of the factory overhead
accounts.
Factory Overhead: |
|
|
• Spinning Department |
|
|
• Tufting Department |
|
|