Entries for Process Cost System Preston & Grover Soap Company manufactures powde
ID: 2335477 • Letter: E
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 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:
Departmental accounts are maintained for factory overhead, which both have zero balances on July 1.
Manufacturing operations for July are summarized as follows:
Required:
1. Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank.
2. Compute the July 31 balances of the inventory accounts.
3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance.
Finished Goods $7,010 Work in Process—Making 2,720 Work in Process—Packing 3,550 Materials 1,540Explanation / Answer
Item Account Debit Credit a. Materials 87,320 Accounts payable 87,320 b. work in process-Making Deptt 57,680 work in process-pcking Deptt 20,060 Factory overhead -making Deptt 2,260 Factory overhead -packing Deptt 810 Materials 80,810 c. work in process-Making Deptt 41,210 work in process-pcking Deptt 27,820 Factory overhead -making Deptt 7,980 Factory overhead -packing Deptt 14,310 Wages payable 91,320 d. Factory overhead -making Deptt 7,520 Factory overhead -packing Deptt 6,210 Accumulated Depreciation 13,730 e Factory overhead -making Deptt 1,430 Factory overhead -packing Deptt 570 prepaid insurance 2,000 f. work in process-Making Deptt 19,670 work in process-pcking Deptt 21,730 Factory overhead -making Deptt 19,670 Factory overhead -packing Deptt 21,730 g. work in process-packing department 118,900 work in process-making department 118,900 h. finished goods 187,130 work in process-packing department 187,130 i. cost of goods sold 187,820 finished goods 187,820 2) materials 8,050 work in process -Making Department 2,380 work in process-Packing Department 4,930 finished goods 6,320 t-Accounts materials opening 1,540 Requistioned 80,810 purchases 87,320 end bal 8,050 work in process-making deptt opening 2,720 DM 57,680 trfg -packing deptt 118,900 DL 41,210 OH applied 19,670 end bal 2,380 work in process-pcking deptt opening 3,550 trfd making 118,900 DM 20,060 finished goods 187,130 DL 27,820 OH applied 21,730 end bal 4,930 finished goods opening 7,010 cost of goods sold 187,820 WIP-packing 187,130 end bal 6,320 3) Factory overhea-making department 480 Credit Factory overhead -packing department 470 Debit Factory overhead-making department indirect mt 2,260 WIP 19,670 ind lab 7,980 dep 7,520 prepaid 1,430 end bal 480 Factory overhead-packing department indirect mt 810 WIP 21,730 ind lab 14,310 dep 6,210 prepaid 570 end bal 470
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.