Question

FloorMate 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 October 1, FloorMate Carpet Company had the following inventories:

Finished Goods	$8,400
Work in Process-Spinning Department	1,600
Work in Process-Tufting Department	2,100
Materials	4,500

Departmental accounts are maintained for factory overhead, and both have zero balances on October 1. Manufacturing operations for October are summarized as follows:

Oct.	1	Materials purchased on account, $84,300
	2	Materials requisitioned for use:
		Fiber—Spinning Department, $42,600
		Carpet backing—Tufting Department, $34,500
		Indirect materials—Spinning Department, $4,000
		Indirect materials—Tufting Department, $2,500
	31	Labor used:
		Direct labor—Spinning Department, $27,200
		Direct labor—Tufting Department, $18,600
		Indirect labor—Spinning Department, $12,200
		Indirect labor—Tufting Department, $11,800
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,300
	31	Expired prepaid factory insurance:
		Spinning Department, $1,200
		Tufting Department, $1,000
	31	Applied factory overhead:
		Spinning Department, $23,100
		Tufting Department, $18,150
	31	Production costs transferred from Spinning Department to Tufting Department, $86,000
	31	Production costs transferred from Tufting Department to Finished Goods, $150,000
	31	Cost of goods sold during the period, $154,500

	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 October 31 balances of the inventory accounts.
3.	Compute the October 31 balances of the factory overhead accounts.

Answer 1

1	Date	General Journal	Debit	Credit
	Oct 1	Materials	$                    84,300
		Accounts Payable		$                       84,300
	Oct 2	Work in Process—Spinning Department	$                    42,600
		Work in Process—Tufting Department	$                    34,500
		Factory Overhead—Spinning Department	$                      4,000
		Factory Overhead—Tufting Department	$                      2,500
		Materials		$                       83,600
	Oct 31	Work in Process—Spinning Department	$                    27,200
		Work in Process—Tufting Department	$                    18,600
		Factory Overhead—Spinning Department	$                    12,200
		Factory Overhead—Tufting Department	$                    11,800
		Wages Payable		$                       69,800
	Oct 31	Factory Overhead—Spinning Department	$                      5,300
		Factory Overhead—Tufting Department	$                      3,300
		Accumulated Depreciation		$                         8,600
	Oct 31	Factory Overhead—Spinning Department	$                      1,200
		Factory Overhead—Tufting Department	$                      1,000
		Prepaid Insurance		$                         2,200
	Oct 31	Work in Process—Spinning Department	$                    23,100
		Work in Process—Tufting Department	$                    18,150
		Factory Overhead—Spinning Department		$                       23,100
		Factory Overhead—Tufting Department		$                       18,150
	Oct 31	Work in Process—Tufting Department	$                    86,000
		Work in Process—Spinning Department		$                       86,000
	Oct 31	Finished Goods	$                 150,000
		Work in Process—Tufting Department		$                    150,000
	Oct 31	Cost of Goods Sold	$                 154,500
		Finished Goods		$                    154,500
2			Materials	Work in Process - Spinning Dept.	Work in Process - Tufting Dept.	Finished Goods
		Balance, October 1	$               4,500	$                 1,600	$       2,100	$    8,400
		Debits	84,300	92,900	157,250	150,000
		Credits	(83,600)	(86,000)	(150,000)	(154,500)
		Balance, October 31	$               5,200	$                 8,500	$       9,350	$    3,900
		1 $42,600 + $27,200 + $23,100 = 92900
		2 $34,500 + $18,600 + $18,150 + $86,000 = 157250
3			Factory Overhead —Spinning Dept.	Factory Overhead —Tufting Dept.
		Balance, October 1	$                             -	$                                -
		Debits	22,700	18,600
		Credits	(23,100)	(18,150)
		Balance, October 31	(400)	450
		1 $4,000 + $12,200 + $5,300 + $1,200 = $22,700
		2 $2,500 + $11,800 + $3,300 + $1,000 = 18,600