Show Me How Calculator Entries for Process Cost System Preston & Grover Soap Com
ID: 2515178 • Letter: S
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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 $19,190 Work in Process—Making 7,460 Work in Process—Packing 9,720 Materials 4,210Explanation / Answer
Item Account Debit Credit a. Materials 238990 Accounts Payable 238990 b. Work in Process-Making Department 157870 Work in Process-Packing Department 54910 Factory Overhead-Making Department 6180 Factory Overhead-Packing Department 2220 Materials 221180 c. Work in Process-Making Department 112790 Work in Process-Packing Department 76130 Factory Overhead-Making Department 21840 Factory Overhead-Packing Department 39160 Wages Payable 249920 d. Factory Overhead-Making Department 20590 Factory Overhead-Packing Department 17000 Accumulated Depreciation 37590 e. Factory Overhead-Making Department 3900 Factory Overhead-Packing Department 1560 Prepaid Insurance 5460 f. Work in Process-Making Department 53820 Work in Process-Packing Department 59470 Factory Overhead-Making Department 53820 Factory Overhead-Packing Department 59470 g. Work in Process-Packing Department 325420 Work in Process-Making Department 325420 h. Finished Goods 512150 Work in Process-Packing Department 512150 i. Cost of Goods Sold 514020 Finished Goods 514020 2. July 31 balances of the inventory accounts. Materials (4210+238990-221180) 22020 Work in Process—Making Department (7460+157870+112790+53820-325420) 6520 Work in Process—Packing Department (9720+54910+76130+59470+325420-512150) 13500 Finished Goods (19190+512150-514020) 17320 3. July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. Factory Overhead—Making Department = 6180+21840+20590+3900-53820 = -1310 Credit Factory Overhead—Packing Department = 2220+39160+17000+1560-59470 = 470 Debit