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now.com/lrm/takeAssignment/takeAssignmentMain.doinvoker-assignments&takeAssig; Show Me How 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 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 $14,510 5,640 7,350 3,190 $180,780 b. Materials requisitioned for use D Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $119,420 41,540 4,670 1,680 c. Labor used Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department $85,310 57,580 16,520 29,020 d. Deprediation charged on fixed assets Making Department $15,580 12,860 Packing Department e. Expired prepaid factory insurance Making Department 2,950 1,180 Packing Department and Exit

Solution

Item Account Debit Credit a. Materials 180,780 Accounts payable 180,780 b. work in process-Making Deptt 119,420 work in process-pcking Deptt 41,540 Factory overhead -making Deptt 4,670 Factory overhead -packing Deptt 1,680 Materials 167,310 c. work in process-Making Deptt 85,310 work in process-pcking Deptt 57,580 Factory overhead -making Deptt 16,520 Factory overhead -packing Deptt 29,620 Wages payable 189,030 d. Factory overhead -making Deptt 15,580 Factory overhead -packing Deptt 12,860 Accumulated Depreciation 28,440 e Factory overhead -making Deptt 2,950 Factory overhead -packing Deptt 1,180 prepaid insurance 4,130 f. work in process-Making Deptt 40,710 work in process-pcking Deptt 44,980 Factory overhead -making Deptt 40,710 Factory overhead -packing Deptt 44,980 g. work in process-packing department 246,150 work in process-making department 246,150 h. finished goods 387,390 work in process-packing department 387,390 i. cost of goods sold 388,810 finished goods 388,810 2) materials 16,660 work in process -Making Department 4,930 work in process-Packing Department 10,210 finished goods 13,090 t-Accounts materials opening 3,190 Requistioned 167,310 purchases 180,780 end bal 16,660 work in process-making deptt opening 5,640 DM 119,420 trfg -packing deptt 246,150 DL 85,310 OH applied 40,710 end bal 4,930 work in process-pcking deptt opening 7,350 trfd making 246,150 DM 41,540 finished goods 387,390 DL 57,580 OH applied 44,980 end bal 10,210 finished goods opening 14,510 cost of goods sold 388,810 WIP-packing 387,390 end bal 13,090 3) Factory overhea-making department 990 Credit Factory overhead -packing department 470 Debit Factory overhead-making department indirect mt 4,670 WIP 40,710 ind lab 16,520 dep 15,580 prepaid 2,950 end bal 990 Factory overhead-packing department indirect mt 1,680 WIP 44,980 ind lab 29,620 dep 12,860 prepaid 1,180 end bal 470