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	$7,200
Work in Process-Spinning Department	1,000
Work in Process-Tufting Department	2,400
Materials	4,300

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, $80,000
	2	Materials requisitioned for use:
		Fiber—Spinning Department, $42,000
		Carpet backing—Tufting Department, $34,600
		Indirect materials—Spinning Department, $3,000
		Indirect materials—Tufting Department, $2,900
	31	Labor used:
		Direct labor—Spinning Department, $26,900
		Direct labor—Tufting Department, $17,800
		Indirect labor—Spinning Department, $11,700
		Indirect labor—Tufting Department, $11,800
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,500
	31	Expired prepaid factory insurance:
		Spinning Department, $1,300
		Tufting Department, $1,000
	31	Applied factory overhead:
		Spinning Department, $21,500
		Tufting Department, $18,850
	31	Production costs transferred from Spinning Department to Tufting Department, $85,000
	31	Production costs transferred from Tufting Department to Finished Goods, $152,600
	31	Cost of goods sold during the period, $155,300

	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	Account Titles and Explanation	Debit	Credit
Oct. 1	Materials	80000
	Accounts Payable		80000
	(To record materials purchased on account)
2	Work in process - Spinning department	42000
	Work in process - Tufting department	34600
	Factory overhead - Spinning department	3000
	Factory overhead - Tufting department	2900
	Materials		82500
	(To record materials requisitioned)
31	Work in process - Spinning department	26900
	Work in process - Tufting department	17800
	Factory overhead - Spinning department	11700
	Factory overhead - Tufting department	11800
	Wages expense		68200
	(To record labor used)
31	Factory overhead - Spinning department	5300
	Factory overhead - Tufting department	3500
	Accumulated depreciation-Factory		8800
	(To record depreciation charged on fixed assets)
31	Factory overhead - Spinning department	1300
	Factory overhead - Tufting department	1000
	Prepaid insurance		2300
	(To record expired prepaid factory insurance)
31	Work in process - Spinning department	21500
	Work in process - Tufting department	18850
	Factory overhead - Spinning department		21500
	Factory overhead - Tufting department		18850
	(To record factory overhead applied)
31	Work in process - Tufting department	85000
	Work in process - Spinning department		85000
	(To record transfer from spinning to tufting department)
31	Finished goods	152600
	Work in process - Tufting department		152600
	(To record transfer from tufting department to finished goods)
31	Cost of goods sold	155300
	Finished goods		155300
	(To record cost of goods sold)

Note: Kindly confirm the exact wording of account titles per the chart of accounts since the same has not been provided with the question.

2.

Materials	1800	Debit	(4300+80000-82500)
Work in Process:
Spinning department	6400	Debit	(1000+42000+26900+21500-85000)
Tufting department	6050	Debit	(2400+34600+17800+18850+85000-152600)
Finished goods	4500	Debit	(7200+152600-155300)

3.

Factory Overhead:
Spinning department	200	Credit	(3000+11700+5300+1300-21500)
Tufting department	350	Debit	(2900+11800+3500+1000-18850)