show Me How Entries for Process Cost System Preston Grover

show Me How Entries for Process Cost System Preston & Grover Soap Company marvtactures powdered detergent. Phosphate-paced in process in the Making Department. where \" is tumed nto 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: Pinished Goods Work in Process-Making Work in Process-Packing $26,570 10,320 13,460 5,830 Departmental accounts are maintained far factory overhead, which both have zero balanoes on July 1. Manufacturing operations for July are summarized as follows a Materials purchased on account b. Materials requisitioned for use 330,910 Phosphate-Making Department $218,590 76,030 8,550 3,070 Indirect materials-Making Department Indirect materials-Packing Department C Labor used Direct labor-Making Department 156,170 105,410 Direct labor-Packing Department Check My Work for Grading MacBook Pro 5

Solution

1) Journal Entries: Date Accounts Titles Debit $ Credit $ a Materials 330910 AP 330910 b WIP - MD 218590 WIP - PD 76030 FO - MD 8550 FO - PD 3070 Materials 306240 c WIP - MD 156170 WIP - PD 105410 FO - MD 30240 FO - PD 54220 Wages Payable 346040 d FO - MD 28510 FO - PD 23540 Acc. Dep. 52050 e FO - MD 5400 FO - PD 2160 Prepaid Insurance 7560 f WIP - MD 74520 WIP - PD 82340 FO - MD 74520 FO - PD 82340 g WIP - PD 450580 WIP - MD 450580 h FG 709130 WIP - PD 709130 i COGS 711720 FG 711720 2. Balance of the Inventory accounts : Material 30500 WIP - MD 9020 WIP - PD 188690 FG 23980 3) FO - MD 1820 credit FO - PD 650 Debit