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 $8,200 Work in Process-Spinning Department 1,800 Work in Process-Tufting Department bent 2,900 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, $82,700 2 Materials requisitioned for use: Fiber-Spinning Department, $43,800 Carpet backing-Tufting Department, $34,900

Answer 1

DR CR 1 Date Particulars 01-Jan Materials Accounts payable $ 82,700.00 Amount $ 82,700.00 $ 1,800.00 02-Jan Work in progress Spinning department $ 43,800.00 Work in progress Tufting department $ 34,900.00 Factory overheads-Spinning department $ 3,200.00 Factory overhead-Tufting department $ 2,800.00 Materials 2 Calculate the inventory account balance on 31 January Particulars WIP- Spinning Beginning inventory WIP-Spinning Add: Current cost Raw material Labor Overhead applied Total cost of goods manufacturing Less: Cost of goods sold Ending inventory of WIP- Spinning $ $ $ $ $ $ 43,800.00 27,000.00 21,850.00 94,450.00 -86,000.00 8,450.00 $ 84,700.00 31-Jan Work in progress Spinning department $ 27,000.00 Work in progress Tufting department $ 17,400.00 Factory overheads-Spinning department | $ 11,600.00 Factory overhead-Tufting department $ 11,700.00 Wages payable Amount $ 67,700.00 $ 2,900.00 31-Jan Factory overheads-Spinning department | $ Factory overhead- Tufting department $ Accumulated depreciation - Factory 5,200.00 3,100.00 Particulars WIP- Tufting Beginning inventory of WIP- Tufting Add: Current cost Raw material Labor Overhead applied Cost of goods transferred from Spinning Total cost of goods manufacturing Less: Cost of goods transferred Ending inventory of WIP- Tufting $ 8,300.00 $ 34,900.00 $ 17,400.00 $ 18,350.00 $ 86,000.00 $ 1,59,550.00 $-1,52,800.00 $ 6,750.00 31-Jan Factory overheads-Spinning department Factory overhead- Tufting department Prepaid insurance $ $ 1,500.00 1,000.00 $ 2,500.00 $ 21,850.00 $ 18,350.00 31-Jan Work in progress Spinning department Work in progress Tufting department Factory overheads-Spinning department Factory overhead-Tufting department $ 21,850.00 $ 18,350.00 Finished Goods Beginning inventory Add: Cost of goods manufactured Total cost of goods available Less: Cost of goods sold Ending inventory of finished goods $ 8,200.00 $ 1,52,800.00 $ 1,61,000.00 $-1,57,900.00 $ 3,100.00 $ 86,000.00 31-Jan Work in progress Tufting department Work in progress Spinning department $ 86,000.00 $1,52,800.00 31-Jan Finished goods inventory Work in progress Tufting department $1,52,800.00 $1,57,900.00 31-Jan Cost of goods sold Finished goods inventory Calculate the January 31 balances of the factory overhead Particulars Indirect material Indirect labor Depreciation Prepaid insurance expired Total overhead incurred Overhead applied Balance in overhead account Spinning Tufting $ 3,200.00 $ 2,800.00 $ 11,600.00 $ 11,700.00 $ 5,200.00 $ 3,100.00 $ 1,500.00 $ 1,000.00 $ 21,500.00 $18,600.00 $ 21,850.00 $18,350.00 $ - 350.00 $ 250.00 $1,57,900.00