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	$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 October 1. Manufacturing operations for October are summarized as follows:

Oct.	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 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. 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 $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 October 1. Manufacturing operations for October are summarized as follows: Oct. 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 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. X Chart of Accounts CHART OF ACCOUNTS FloorMate 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 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expenses 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expenses 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense X Journal Shaded cells have feedback. 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. How does grading work? PAGE 10 JOURNAL Score: 229/346 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 ? ? 2 ? 3 ? ? 4 ? 5 ? 6 ? 7 ? 8 ? ? 9 ? 10 ? 11 ? 12 ? 13 ? ? 14 ? 15 ? 16 ? ? 17 ? 18 ? 19 ? ? 20 ? 21 ? 22 ? 23 ? ? 24 ? 25 ? ? 26 ? 27 ? ? 28 ? 2. Compute the October 31 balances of the inventory accounts. Materials Debit Work in Process: • Spinning Department Debit • Tufting Department Debit Finished Goods Debit

Answer 1

1.

Rows	Date	General Journal	Debit	Credit
1	Oct. 1	Materials	81200
2		Accounts payable		81200
		(To record materials purchased on account)
3	Oct. 2	Work in process-Spinning department	43000
4		Work in process-Tufting department	34200
5		Factory overhead-Spinning department	3500
6		Factory overhead-Tufting department	2800
7		Materials		83500
		(To record materials requisitioned)
8	Oct. 31	Work in process-Spinning department	27600
9		Work in process-Tufting department	17900
10		Factory overhead-Spinning department	11800
11		Factory overhead-Tufting department	11700
12		Wages payable		69000
		(To record labor used)
13	Oct. 31	Factory overhead-Spinning department	5300
14		Factory overhead-Tufting department	3700
15		Accumulated depreciation-Factory		9000
		(To record depreciation on fixed assets)
16	Oct. 31	Factory overhead-Spinning department	1300
17		Factory overhead-Tufting department	1100
18		Prepaid insurance		2400
		(To record expired prepaid factory insurance)
19	Oct. 31	Work in process-Spinning department	22200
20		Work in process-Tufting department	18950
21		Factory overhead-Spinning department		22200
22		Factory overhead-Tufting department		18950
		(To record factory overhead applied)
23	Oct. 31	Work in process-Tufting department	86000
24		Work in process-Spinning department		86000
		(To record transfer from Spinning to Tufting department)
25	Oct. 31	Finished goods	150400
26		Work in process-Tufting department		150400
		(To record transfer from Tufting department to Finished goods)
27	Oct. 31	Cost of goods sold	153400
28		Finished goods		153400
		(To record cost of sales)

2.

October 31 balances of inventory accounts:	$
Materials ($4200 + $81200 - $83500)	1900	Debit
Work in process:
Spinning department	7900	Debit
($1100 + $43000 + $27600 + $22200 - $86000)
Tufting department	9350	Debit
($2700 + $34200 + $17900 + $18950 + $86000 - $150400)
Finished goods ($6200 + $150400 - $153400)	3200	Debit

3.

October 31 balances of factory overhead accounts:	$
Factory overhead:
Spinning department ($3500 + $11800 + $5300 + $1300 - $22200)	-300	Credit (Overapplied)
Tufting department ($2800 + $11700 + $3700 + $1100 - $18950)	350	Debit (Underapplied)