Question

Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granders. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories: Finished Goods $11.930 Work in Process-Making 4,640 Work in Process-Packing 6,040 Materials 2,620 Departmental accounts are maintained for factory overhead, which Manufacturing operations for July are summarized as follows: a. Materials purchased on account $145,500 b. Materials requisitioned for use Phosphate-Making Department 19,160 Packaging-Packing Department 34,140 Indirect materials -- Making Department 3,640 Indirect materials-Packing Department 1,380 c. Labor used: Direct labor-Making Department $70,130 Direct labor-Packing Department 47,340 Indirect labor-Making Department 13.500 Indirect labor-Packing Department 24,350 d. Depreciation charged on fixed assets

Answer 1

(if any figure is read wrong please make changes)
Item	Account				Debit	Credit
a.	Materials				148,600
	Accounts payable					148,600
b.	work in process-Making Deptt				98,160
	work in process-pcking Deptt				34,140
	Factory overhead -making Deptt				3,840
	Factory overhead -packing Deptt				1,380
	Materials					137,520
c.	work in process-Making Deptt				70,130
	work in process-pcking Deptt				47,340
	Factory overhead -making Deptt				13,580
	Factory overhead -packing Deptt				24,350
	Wages payable					155,400
d.	Factory overhead -making Deptt				12,800
	Factory overhead -packing Deptt				10,570
	Accumulated Depreciation					23,370
e	Factory overhead -making Deptt				2,430
	Factory overhead -packing Deptt				970
	prepaid insurance					3,400
f.	work in process-Making Deptt				33,470
	work in process-pcking Deptt				36,980
	Factory overhead -making Deptt					33,470
	Factory overhead -packing Deptt					36,980
g.	work in process-packing department				202,340
	work in process-making department					202,340
h.	finished goods				318,450
	work in process-packing department					318,450
i.	cost of goods sold				319,620
	finished goods					319,620
2)
	materials				13,700
	work in process -Making Department				4,060
	work in process-Packing Department				8,390
	finished goods				10,760
	t-Accounts
	materials
	opening	2,620	Requistioned		137,520
	purchases	148,600
	end bal	13,700
	work in process-making deptt
	opening	4,640
	DM	98,160	trfg -packing deptt		202,340
	DL	70,130
	OH applied	33,470
	end bal	4,060
	work in process-pcking deptt
	opening	6,040
	trfd making	202,340
	DM	34,140	finished goods		318,450
	DL	47,340
	OH applied	36,980
	end bal	8,390
	finished goods
	opening	11,930	cost of goods sold		319,620
	WIP-packing	318,450
	end bal	10,760
3)
	Factory overhea-making department				820	Credit
	Factory overhead -packing department				290	Debit
	Factory overhead-making department
	indirect mt	3,840	WIP		33,470
	ind lab	13,580
	dep	12,800
	prepaid	2,430
			end bal		820
	Factory overhead-packing department
	indirect mt	1,380	WIP		36,980
	ind lab	24,350
	dep	10,570
	prepaid	970
	end bal	290