Question

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 for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows: Materials purchased on account, $84,300 Jan 1 Materials requisitioned for use: 2 Fiber-Spinning Department, $42,600 Carpet backing-Tufting Department, $34,500 Indirect materials-Spinning Department, $4,000 Indirect materials-Tufting Department, $2,500

Answer 1

1.

	JOURNAL
	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1	Jan. 1	Materials		84300
2		Accounts Payable			84300
3	Jan. 2	Work in process - Spinning department		42600
4		Work in process - Tufting department		34500
5		Factory overhead - Spinning department		4000
6		Factory overhead - Tufting department		2500
7		Materials			83600
8	Jan. 31	Work in process - Spinning department		27200
9		Work in process - Tufting department		18600
10		Factory overhead - Spinning department		12200
11		Factory overhead - Tufting department		11800
12		Wages payable			69800
13	Jan. 31	Factory overhead - Spinning department		5300
14		Factory overhead - Tufting department		3300
15		Accumulated depreciation-Factory			8600
16	Jan. 31	Factory overhead - Spinning department		1200
17		Factory overhead - Tufting department		1000
18		Prepaid insurance			2200
19	Jan. 31	Work in process - Spinning department		23100
20		Work in process - Tufting department		18150
21		Factory overhead - Spinning department			23100
22		Factory overhead - Tufting department			18150
23	Jan. 31	Work in process - Tufting department		86000
24		Work in process - Spinning department			86000
25	Jan. 31	Finished goods		150000
26		Work in process - Tufting department			150000
27	Jan. 31	Cost of goods sold		154500
28		Finished goods			154500

Kindly use exact wording for account titles per the chart of accounts since the same has not been provided with the question.

2.

Materials	5200	Debit	(4500+84300-83600)
Work in Process:
Spinning department	8500	Debit	(1600+42600+27200+23100-86000)
Tufting department	9350	Debit	(2100+34500+18600+18150+86000-150000)
Finished goods	3900	Debit	(8400+150000-154500)

3.

Factory Overhead:
Spinning department	400	Credit	(4000+12200+5300+1200-23100)
Tufting department	450	Debit	(2500+11800+3300+1000-18150)