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 granulars. The output of Making transferred to the Packing Department, where pedaging is added at the beginning of the process. On July 1. Preston & Grover Soap Company had the following inventories Finished Goods Work in Process ---Making Work in Process-Packing Materials $13.500 6.790 7.350 5.100 Departmental accounts are maintained for factory both have balances on July 1. Manufacturing operations for July are summarized as Materials purchased on account b. Materials requisitioned for use Phosphate-Making Department Packaging-Packing Department Indirect material Department Indirect material Packing Department Labor used Direct laborang Department Direct labor-Packing Department Indirect laboral Department Indirect laboracing Department d. Depreciation charged on fored Ming Department Pachecat Maling Department Packing Department

Answer 1

1.

Journal entries as follows:

Item Credit Account Material Accounts payable Debit $149,800 $149,800 WIP-Making department WIP-Packing department Factory overhead-Making department Factory overhead-Packing department Materials $105,700 $31.300 $4.980 $1,530 $143,510 WIP-Making department WIP-Packing department Factory overhead-Making department Factory overhead-Packing department Wages payable $32.400 $40.900 $15.400 $18.300 $107.000 Factory overhead-Making department Factory overhead-Packing department Accumulated depreciation $10.700 $7.900 $18.600

Factory overhead-Making department Factory overhead-Packing department Prepaid Insurance $2.000 $1,500 $3,500 $32,570 $30,050 WIP-Making department WIP-Packing department Factory overhead-Making department Factory overhead-Packing department $32.570 $30.050 $166,790 WIP-Packing department WIP-Making department $166,790 $263,400 Finished Goods WIP-Packing department $263,400 $265,200 COGS Finished goods $265,200

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2.

Compute the July 31 balances of the inventory accounts:

Materials	$11,390
WIP-Making	$10,670
WIP-Packing	$12,990
Finished goods	$11,700

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3.

Factory overhead -Making department	$510	Dr.
Factory overhead -Packing department	$820	Cr.