Question

In: Accounting

Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making...

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 $26,810
Work in Process—Making 10,420
Work in Process—Packing 13,580
Materials 5,890

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 $333,980
b. Materials requisitioned for use
Phosphate—Making Department $220,620
Packaging—Packing Department 76,740
Indirect materials—Making Department 8,630
Indirect materials—Packing Department 3,100
c. Labor used
Direct labor—Making Department $157,610
Direct labor—Packing Department 106,380
Indirect labor—Making Department 30,520
Indirect labor—Packing Department 54,720
d. Depreciation charged on fixed assets
Making Department $28,780
Packing Department 23,760
e. Expired prepaid factory insurance
Making Department $5,450
Packing Department 2,180
f. Applied factory overhead
Making Department $75,210
Packing Department 83,100
g. Production costs transferred from Making Department to Packing Department $454,750
h. Production costs transferred from Packing Department to Finished Goods $715,690
i. Cost of goods sold during the period $718,310

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.
b.
c.
d.
e.
f.
g.
h.
i.

2. Compute the July 31 balances of the inventory accounts.

Materials $
Work in Process—Making Department $
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 $

Solutions

Expert Solution

      
Item Account    Debit Credit
      
a. Materials    3,33,980
Accounts payable     3,33,980
      
      
b. work in process-Making Deptt    2,20,620
work in process-pcking Deptt    76,740
Factory overhead -making Deptt    8,630
Factory overhead -packing Deptt    3,100
Materials     3,09,090
      
      
c. work in process-Making Deptt    1,57,610
work in process-pcking Deptt    1,06,380
Factory overhead -making Deptt    30,520
Factory overhead -packing Deptt    54,720
Wages payable     3,49,230
      
      
d. Factory overhead -making Deptt    28,780
Factory overhead -packing Deptt    23,760
Accumulated Depreciation     52,540
      
      
      
e Factory overhead -making Deptt    5,450
Factory overhead -packing Deptt    2,180
prepaid insurance     7,630
      
      
f. work in process-Making Deptt    75,210
work in process-pcking Deptt    83,100
Factory overhead -making Deptt     75,210
Factory overhead -packing Deptt     83,100
      
      
g. work in process-packing department    4,54,750
work in process-making department     4,54,750
      
      
h. finished goods    7,15,690
work in process-packing department     7,15,690
      
      
i. cost of goods sold    7,18,310
finished goods     7,18,310
      
      
      
2)      
materials    30,780
work in process -Making Department    9,110
work in process-Packing Department    18,860
finished goods    24,190
      
t-Accounts     
materials     
opening 5,890 Requistioned   3,09,090
purchases 3,33,980    
end bal 30,780    
      
work in process-making deptt     
opening 10,420    
DM 2,20,620 trfg -packing deptt  4,54,750
DL 1,57,610    
OH applied 75,210    
end bal 9,110    
      
work in process-pcking deptt     
opening 13,580    
trfd making 4,54,750    
DM 76,740 finished goods   7,15,690
DL 1,06,380    
OH applied 83,100    
end bal 18,860    
      
      
finished goods     
opening 26,810 cost of goods sold  7,18,310
WIP-packing 7,15,690    
end bal 24,190    
      
      
3)      
Factory overhea-making department    1,830 Credit
Factory overhead -packing department    470 Debit
      
      
Factory overhead-making department     
indirect mt 8,630 WIP  75,210
ind lab 30,520    
dep 28,780    
prepaid 5,450    
   end bal  1,830
      
      
Factory overhead-packing department     
indirect mt 3,100 WIP  83,100
ind lab 54,720    
dep 23,760    
prepaid 2,180    
end bal 470    


Related Solutions

Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making...
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 $7,500 Work in Process—Making 2,920 Work in Process—Packing 3,800 Materials 1,650 Departmental accounts are maintained for factory overhead, which both have zero balances...
Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making...
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 $19,800 Work in Process—Making 7,700 Work in Process—Packing 10,030 Materials 4,350 Departmental accounts are maintained for factory overhead, which both have zero balances...
Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making...
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 $12,790 Work in Process—Making 4,970 Work in Process—Packing 6,480 Materials 2,810 Departmental accounts are maintained for factory overhead, which both have zero balances...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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 $21,650 Work in Process—Making 8,410 Work in Process—Packing 10,960 Materials 4,750 Departmental accounts are maintained for factory overhead,...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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 $29,030 Work in Process—Making 11,280 Work in Process—Packing 14,700 Materials 6,370 Departmental accounts are maintained for factory overhead,...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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 $29,270 Work in Process—Making 11,380 Work in Process—Packing 14,830 Materials 6,430 Departmental accounts are maintained for factory overhead,...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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$11,070 Work in Process—Making4,300 Work in Process—Packing5,610 Materials2,430 Departmental accounts are maintained for factory overhead, which both have zero...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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 $27,310 Work in Process—Making 10,610 Work in Process—Packing 13,830 Materials 5,990 Departmental accounts are maintained for factory overhead,...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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 $4,920 Work in Process—Making 1,910 Work in Process—Packing 2,490 Materials 1,080 Departmental accounts are maintained for factory overhead,...
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
Entries for Process Cost System 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 $11,440 Work in Process—Making 4,450 Work in Process—Packing 5,790 Materials 2,510 Departmental accounts are maintained for factory overhead,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT