Question

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 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land

Answer 1

1.

Journalize the entry as follows:

Post ref. Credit Date Jan. 01 Description Materials Accounts payable Debit $84.700 $84.700 Jan. 02 Work in progress spinning department Work in progress Tufting department Factory overheads-spinning department Factory overheads-Tufting department Materials $42.800 $34.000 $3,400 $2,700 $82,900 Work in progress spinning department Work in progress Tufting department Factory overheads-spinning department Factory overheads-Tufting department Wages payable $26.600 $17.600 $11.900 $11.800 $67,900

Jan 31 Factory overheads-spinning department Factory overheads-Tufting department Accumulated depreciation factory $5,400 $4.000 $9,400 Jan. 31 Factory overheads-spinning department Factory overheads-Tufting department Prepaid insurance $1.100 $800 $1.900 Jan. 31 $22.200 $18.950 Work in progress spinning department Work in progress Tufting department Factory overheads-spinning department Factory overheads-Tufting department $22.200 $18.950

Jan. 31 $89.500 Work in progress Tufting department Work in progress spinning department $89,500 Jan. 31 $151,400 Finished goods inventory Work in progress Tufting department $151.400 Jan. 31 $154,200 Cost of Goods sold Finished goods inventory $154,200

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2.

WIP - Spinning
Beginning inventory WIP-spinning			$1,200
Add: Current cost
Raw material		$42,800
Labor		$26,600
Overhead applied		$22,200	$91,600
Total cost of goods manufacturing			$92,800
Less: COGS			($89,500)
Ending inventory of WIP-spinning			$3,300
WIP - Tufting
Beginning inventory WIP-tufting			$2,300
Add: Current cost
Raw material		$34,000
Labor		$17,600
Overhead applied		$18,950
Cost of goods transferred from tufting		$89,500	$160,050
Total cost of goods manufacturing			$162,350
Less: COGS			($151,400)
Ending inventory of WIP-tufting			$10,950
Finished goods
Beginning inventory			$6,500
Add: Cost of goods manufactured			$151,400
Total cost of goods available			$157,900
Less: Cost of goods sold			($154,200)
Ending inventory of finished goods			$3,700

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3.

Compute factory overhead as follows:

		Spinning	Tufting
Indirect material		$3,400	$2,700
Indirect labor		$11,900	$11,800
Depreciation		$5,400	$4,000
Prepaid insurance expired		$1,100	$800
Total overhead incurred		$21,800	$19,300
Overhead applied		$22,200	$18,950
Balance in overhead account		$400	$350
		Credit	Debit