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:

28 entries into the journal

Finished Goods	$6,200
Work in Process-Spinning Department	1,100
Work in Process-Tufting Department	2,700
Materials	4,200

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, $81,200
	2	Materials requisitioned for use:
		Fiber—Spinning Department, $43,000
		Carpet backing—Tufting Department, $34,200
		Indirect materials—Spinning Department, $3,500
		Indirect materials—Tufting Department, $2,800
	31	Labor used:
		Direct labor—Spinning Department, $27,600
		Direct labor—Tufting Department, $17,900
		Indirect labor—Spinning Department, $11,800
		Indirect labor—Tufting Department, $11,700
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,700
	31	Expired prepaid factory insurance:
		Spinning Department, $1,300
		Tufting Department, $1,100
	31	Applied factory overhead:
		Spinning Department, $22,200
		Tufting Department, $18,950
	31	Production costs transferred from Spinning Department to Tufting Department, $86,000
	31	Production costs transferred from Tufting Department to Finished Goods, $150,400
	31	Cost of goods sold during the period, $153,400

	Required:
1.	Journalize the 28 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. Compute the January 31 balances of the inventory accounts. Materials selector 1 Debit Credit Work in Process: • Spinning Department selector 2 Debit Credit • Tufting Department selector 3 Debit Credit Finished Goods selector 4 Debit Credit
3.	Compute the January 31 balances of the factory overhead accounts. 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Factory Overhead: • Spinning Department selector 1 Debit Credit • Tufting Department selector 2 Debit Credit

Answer 1

Item	Account				Debit	Credit
a.	Materials				81,200
	Accounts payable					81,200
b.	work in process-spinning Deptt				43,000
	work in process-tufting Deptt				34,200
	Factory overhead -spinning Deptt				3,500
	Factory overhead -tufting Deptt				2,800
	Materials					83,500
c.	work in process-spinning Deptt				27,600
	work in process-tufting Deptt				17,900
	Factory overhead -spinning Deptt				11,800
	Factory overhead -tufting Deptt				11,700
	Wages payable					69,000
d.	Factory overhead -spinning Deptt				5,300
	Factory overhead -tufting Deptt				3,700
	Accumulated Depreciation					9,000
e	Factory overhead -spinning Deptt				1,300
	Factory overhead -tufting Deptt				1,100
	prepaid insurance					2,400
f.	work in process-spinning Deptt				22,200
	work in process-tufting Deptt				18,950
	Factory overhead -spinning Deptt					22,200
	Factory overhead -tufting Deptt					18,950
g.	work in process-tufting department				86,000
	work in process-spinning department					86,000
h.	finished goods				150,400
	work in process-tufting department					150,400
i.	cost of goods sold				153,400
	finished goods					153,400
2)	materials				1,900
	work in process -spinning Department				7,900
	work in process-tufting Department				9,350
	finished goods				3,200
	t-Accounts
	materials
	opening	4,200	Requistioned		83,500
	purchases	81,200
	end bal	1,900
	work in process-spinning deptt
	opening	1,100
	DM	43,000	trfg -packing deptt		86,000
	DL	27,600
	OH applied	22,200
	end bal	7,900
	work in process-tuftingg deptt
	opening	2,700
	trfd making	86,000
	DM	34,200	finished goods		150,400
	DL	17,900
	OH applied	18,950
	end bal	9,350
	finished goods
	opening	6,200	cost of goods sold		153,400
	WIP-packing	150,400
	end bal	3,200
3)	Factory overhea-spinning department				300	Credit
	Factory overhead -tuffting department				350	Debit
	Factory overhead-spinning department
	indirect mt	3,500	WIP		22,200
	ind lab	11,800
	dep	5,300
	prepaid	1,300
			end bal		300
	Factory overhead-tufting department
	indirect mt	2,800	WIP		18,950
	ind lab	11,700
	dep	3,700
	prepaid	1,100
	end bal	350