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Question: preston amp grover soap company manufactures powdered detergent phosphate is...

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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 $19,800
Work in Process—Making 7,700
Work in Process—Packing 10,030
Materials 4,350

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 $246,650
b. Materials requisitioned for use:
Phosphate—Making Department $162,930
Packaging—Packing Department 56,670
Indirect materials—Making Department 6,380
Indirect materials—Packing Department 2,290
c. Labor used:
Direct labor—Making Department $116,400
Direct labor—Packing Department 78,570
Indirect labor—Making Department 22,540
Indirect labor—Packing Department 40,410
d. Depreciation charged on fixed assets:
Making Department $21,250
Packing Department 17,550
e. Expired prepaid factory insurance:
Making Department $4,030
Packing Department 1,610
f. Applied factory overhead:
Making Department $55,550
Packing Department 61,370
g. Production costs transferred from Making Department to Packing Department $335,850
h. Production costs transferred from Packing Department to Finished Goods $528,560
i. Cost of goods sold during the period $530,500

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.

Item Account Debit Credit
a.
b.
c.
d.
e.
f.
g.
h.
i.

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 $
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