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:

Finished Goods	$8,300
Work in Process-Spinning Department	2,000
Work in Process-Tufting Department	2,600
Materials	4,800

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, $82,000
	2	Materials requisitioned for use:
		Fiber-Spinning Department, $42,600
		Carpet backing-Tufting Department, $34,700
		Indirect materials-Spinning Department, $3,300
		Indirect materials-Tufting Department, $2,900
	31	Labor used:
		Direct labor-Spinning Department, $26,300
		Direct labor-Tufting Department, $17,200
		Indirect labor-Spinning Department, $12,500
		Indirect labor-Tufting Department, $11,900
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,300
		Tufting Department, $3,100
	31	Expired prepaid factory insurance:
		Spinning Department, $1,000
		Tufting Department, $800
	31	Applied factory overhead:
		Spinning Department, $22,400
		Tufting Department, $18,250
	31	Production costs transferred from Spinning Department to Tufting Department, $90,000
	31	Production costs transferred from Tufting Department to Finished Goods, $153,200
	31	Cost of goods sold during the period, $158,000

	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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
2.	Compute the January 31 balances of the inventory accounts.*
3.	Compute the January 31 balances of the factory overhead accounts.*
	*Enter your amounts in positive value. 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 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 January 31 balances of the inventory accounts. Enter your amounts in positive value. Materials Work in Process: • Spinning Department • Tufting Department Finished Goods 3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value. Factory Overhead: • Spinning Department • Tufting Department

Answer 1

pagl.-? from the given data Item Account materials Accounts payable .. Debiti credit 32000 !.. 82,000 work in progress-spinning 42.600 Work in progress-tufting 34,700 Factory overhead- spinning 3,300 Factory over head-tufting 2,900 materials i n 183,500 Ċ world in progress-spinning opt work in progress- tufting opt Factory overhead - spinning Factory overhead tufting wages payable 26,300 17,200 12: 500 | 11, 900 67.900 Factory overhead-spinning Factory over head-tufting Accumulated Depreciation 5,300 3,100 8,400

Items A cleant credit Factory overhead-sphoning Factory overhead-zulting prepaid insurance . Debit 1,000 - 800 1,800 ES cvorta Pn progress-spiming work in progress- tufting Factory overhead-Sprining factory overhead- tutting 22,4.20 18,250 22,400 18,250 90,000 work in process- tufling work in process- spinning 90,000 In 1,53,200 Huished Goods work in process-tuffing 1,53,241 | 1,58,000 i cost of Goods -sold Finished Goods | 1,58,000

Debit pdg13 I coedit Estem Account *3) materials work in process-spinning work in process- tufting Finished Goods 3,300. 3,300- 9,550 31500 .t-Accounts - materiells opening..- 41800. Requistioned: 83,500 . purchases - 82,000 , ! end balance- 3,300 work in process- spinning ppt til opening – 2000 DM – 42,600 48f9-packling 90,000 DL - 26,300 o Hopplieb- 22,400 End belance - 3,300 work in process- tufli ng opt: opening - 2,600 tofo matling- 90,000 om '-34,700 Finished 1,53,200 1501 ppt ze g oods

page-4 Dehet I credit 1 DL - 17,200 OHapplied 18,250 End belan-9,550 Fished Goods I opening - 8,300 Wip packing - 1,53,200 End balance- 3,500 cost of + 1,58,000 goods sold credit Debit 3) Factory over head spinning 300 Factory over head teetting 450 - Factory over head spinning ppt Indirect mt - 3,300" WPP 22,400 Indirect tab - 12,500 A Department - 5,300 pre paid = 1,000 End balan 300 Factory over head tufting Indirect mt - 2,900 wip Innd Lab -11,900 depart3 ,100 . 18,250 SMS

pre poald - 800 End belance-450 - لاے