Entries for process cost system
Instructions
Chart of Accounts
Journal
Final Questions
X
Instructions
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 | $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 January 1. Manufacturing operations for January are summarized as follows:
Jan. | 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 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. |
X
Chart of Accounts
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General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
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.
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JOURNAL
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X
Final Questions
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 |
Item | Account | Debit | Credit | ||||
a. | Materials | 81,200 | |||||
Accounts payable | 81,200 | ||||||
b. | work in process-spinning Deptt | 43,000 | |||||
work in process-tufting Deptt | 34,200 | ||||||
Factory overhead -spinning Deptt | 3,500 | ||||||
Factory overhead -tufting Deptt | 2,800 | ||||||
Materials | 83,500 | ||||||
c. | work in process-spinning Deptt | 27,600 | |||||
work in process-tufting Deptt | 17,900 | ||||||
Factory overhead -spinning Deptt | 11,800 | ||||||
Factory overhead -tufting Deptt | 11,700 | ||||||
Wages payable | 69,000 | ||||||
d. | Factory overhead -spinning Deptt | 5,300 | |||||
Factory overhead -tufting Deptt | 3,700 | ||||||
Accumulated Depreciation | 9,000 | ||||||
e | Factory overhead -spinning Deptt | 1,300 | |||||
Factory overhead -tufting Deptt | 1,100 | ||||||
prepaid insurance | 2,400 | ||||||
f. | work in process-spinning Deptt | 22,200 | |||||
work in process-tufting Deptt | 18,950 | ||||||
Factory overhead -spinning Deptt | 22,200 | ||||||
Factory overhead -tufting Deptt | 18,950 | ||||||
g. | work in process-tufting department | 86,000 | |||||
work in process-spinning department | 86,000 | ||||||
h. | finished goods | 150,400 | |||||
work in process-tufting department | 150,400 | ||||||
i. | cost of goods sold | 153,400 | |||||
finished goods | 153,400 | ||||||
2) | materials | 1,900 | |||||
work in process -spinning Department | 7,900 | ||||||
work in process-tufting Department | 9,350 | ||||||
finished goods | 3,200 | ||||||
t-Accounts | |||||||
materials | |||||||
opening | 4,200 | Requistioned | 83,500 | ||||
purchases | 81,200 | ||||||
end bal | 1,900 | ||||||
work in process-spinning deptt | |||||||
opening | 1,100 | ||||||
DM | 43,000 | trfg -packing deptt | 86,000 | ||||
DL | 27,600 | ||||||
OH applied | 22,200 | ||||||
end bal | 7,900 | ||||||
work in process-tuftingg deptt | |||||||
opening | 2,700 | ||||||
trfd making | 86,000 | ||||||
DM | 34,200 | finished goods | 150,400 | ||||
DL | 17,900 | ||||||
OH applied | 18,950 | ||||||
end bal | 9,350 | ||||||
finished goods | |||||||
opening | 6,200 | cost of goods sold | 153,400 | ||||
WIP-packing | 150,400 | ||||||
end bal | 3,200 | ||||||
3) | Factory overhea-spinning department | 300 | Credit | ||||
Factory overhead -tuffting department | 350 | Debit | |||||
Factory overhead-spinning department | |||||||
indirect mt | 3,500 | WIP | 22,200 | ||||
ind lab | 11,800 | ||||||
dep | 5,300 | ||||||
prepaid | 1,300 | ||||||
end bal | 300 | ||||||
Factory overhead-tufting department | |||||||
indirect mt | 2,800 | WIP | 18,950 | ||||
ind lab | 11,700 | ||||||
dep | 3,700 | ||||||
prepaid | 1,100 | ||||||
end bal | 350 | ||||||
Entries for process cost system Instructions Chart of Accounts Journal Final Questions X Instructions Port Ormond...
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 $62,000 Work in Process-Spinning Department 35,000 Work in Process-Tufting Department 28,500 Materials 17,000 Departmental accounts are maintained for...
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 $8,400 Work in Process-Spinning Department 1,600 Work in Process-Tufting Department 2,100 Materials 4,500 Departmental accounts are maintained for...
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...
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...
CHART OF ACCOUNTS Port Ormond Carpet Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 610 Interest Revenue 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 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...
Instructions 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: $8,400 Finished Goods Work in Process-Spinning Department 1,600 Work in Process-Tufting Department 2,100 Materials 4,500 Departmental accounts are maintained...
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 $62,000 Work in Process-Spinning Department 35,000 Work in Process-Tufting Department 28,500 Materials 17,000 Departmental accounts are maintained for...
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. CNOWjournals do not use lines for spaces or journal explanations. Every line on a journal page is used for debitor 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...
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 $62,000 Work in Process-Spinning Department 35,000 Work in Process-Tufting Department 28,500 Materials 17,000 Departmental accounts are maintained for...
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 $62,000 Work in Process-Spinning Department 35,000 Work in Process-Tufting Department 28,500 Materials 17,000 Departmental accounts are maintained for...