Question

17-1B

PR 17-1B Entries for process cost system SHOW ME HOW Obj. 1, 3 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 is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories: GENERAL LEDGER $13,500 6,790 Finished Goods Work in Process-Making Work in Process-Packing Materials 7,350 5,100 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows:

Answer 1

1 )Journal Entries -

A- Material control A/c - DEBIT 149800

Cash/Bank A/c - CREDIT 149800

B - Work in progress A/c - DEBIT 137000 ( 105700 + 31300 )

Material control A/c CREDIT 137000

B - Production overhead A/c - DEBIT 6510 ( 4980 + 1530 )

Material control A/c CREDIT 6510

C- Work in progress A/c DEBIT 73300 ( 32400 + 40900 )

2. July 31st balances of Inventory Accounts: MATERIAL a) Material balance as on July 1st ADD- Material purchased on Alc. (LESS) Material requisitioned (to be issued) los 700 + 31300 + 4980 +1530 1 b . Material balance as on 31st July 5106 149800 (143510) 143510 → 11390 FINISHED GOODS. 13,500 a) Opening balance as on July 1st ADD :- Product cost transfered from packing to I finished goods. (Less): - Cost of goods sold b): Closing balance as on 31st July 2 63,400 (2,65,200 11,700

Labor control A/c CREDIT 73300

C- Production overhead DEBIT 33700 (15400+ 18300)

Labor control A/c CREDIT 33700

D- Factory overhead DEBIT 18600 ( 10700 + 7900 )

Accumulated Depreciation  CREDIT 18600

F - Work in progress A/c DEBIT 62620 ( 32570 + 30050 )

Factory overhead A/c CREDIT 62620

G - Output transferred to packing department A/c DEBIT 166790

Work in progress A/c CREDIT 166790

H - Finished goods control A/c DEBIT 263400

Work in progress A/c CREDIT 263400

I - Cost of sales A/c DEBIT 265200

Finished goods control A/c CREDIT 265200

Answer no 2 ) check attachment.

2. July 31st balances of Inventory Accounts: MATERIAL a) Material balance as on July 1st ADD- Material purchased on Alc. (LESS) Material requisitioned (to be issued) los 700 + 31300 + 4980 +1530 1 b . Material balance as on 31st July 5106 149800 (143510) 143510 → 11390 FINISHED GOODS. 13,500 a) Opening balance as on July 1st ADD :- Product cost transfered from packing to I finished goods. (Less): - Cost of goods sold b): Closing balance as on 31st July 2 63,400 (2,65,200 11,700