1. Business
  2. Accounting
  3. entries for process cost system preston amp grover soap company...

Question: entries for process cost system preston amp grover soap company...

Question details

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: 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 overhead, which both have zero balances on July 1 Manufacturing operations for July are summarized as follows a. Materials purchased on account $149,800 b. Materials requisitioned for use Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $105,700 31,300 4,980 1,530
c. Labor used Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department $32,400 40,900 15,400 18,300 d. Depreciation charged on fixed assets Making Department $10,700 Packing Department 7,900 e. Expired prepaid factory insurance Making Department Packing Department Applied factory overhead Making Department Packing Department $2,000 1,500 f. g. Production costs transferrem Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods i. Cost of goods sold during the period 32,570 30,050 $166,790 $263,400 $265,200
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. tem Account Debit Credit a. Materials 149,800 Accounts Payable 149,800 Work in Process-Making Department V Work in Process-Packing Department v Factory Overhead-Making Department Factory Overhead-Packing Department v Materials b. 105,700 V 31,300 V 4,980 1,530 149,800X c. Work in Process-Making Department 32,400 Work in Process-Packing Department Factory Overhead-Making Department Factory Overhead-Packing Department 40,900 18,300
Wages Payable 107,000 d. Factory Overhead-Making Department 10,700 Factory Overhead-Packing Department 7,900 V Accumulated Depreciation 18,600 e. Factory Overhead-Making Department 2,000 Factory Overhead-Packing Department v 1,500v Prepaid Insurance 3,500 f. Work in Process-Making Department 32,570 Work in Process-Packing Department v 30,050 Factory Overhead-Making Department 32,570 V
f. Work in Process- Making Department 32570 Work in Process-Packing Department v Factory Overhead-Making Department Factory Overhead-Packing Department 30,050 32,570 30,050 Work in Process-Packing Department v 166,790 Work in Process-Making Department v 166,790 V h. Finished Goods 263,400 Work in Process-Packing Department V 263,400 i. Cost of Goods Sold v 265,200 Finished Goods 265,200
2. Compute the July 31 balances of the inventory accounts Materials Work in Process-Making Department Work in Process-Packing Department Finished Goods 3. Compute the July 31 balances of the factory overhead accounts Factory Overhead-Making Department Factory Overhead-Packing Department 149,800 X 10,670v 12,990 11,700 430 XDebit -820 Credit
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution