Question

Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...

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 $21,160 Work in Process—Making 8,220 Work in Process—Packing 10,720 Materials 4,640 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 $263,500 b. Materials requisitioned for use Phosphate—Making Department $174,060 Packaging—Packing Department 60,540 Indirect materials—Making Department 6,810 Indirect materials—Packing Department 2,440 c. Labor used Direct labor—Making Department $124,360 Direct labor—Packing Department 83,940 Indirect labor—Making Department 24,080 Indirect labor—Packing Department 43,170 d. Depreciation charged on fixed assets Making Department $22,700 Packing Department 18,750 e. Expired prepaid factory insurance Making Department $4,300 Packing Department 1,720 f. Applied factory overhead Making Department $59,340 Packing Department 65,570 g. Production costs transferred from Making Department to Packing Department $358,790 h. Production costs transferred from Packing Department to Finished Goods $564,680 i. Cost of goods sold during the period $566,740 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.

Homework Answers

Answer #1
No. Account titles and explanation Debit Credit
a Materials $263500
Account payable $263500
(To record materials purchased on account)
b Work in process- Making $174060
Work in process- Packing $60540
Factory overhead- Making $6810
Factory overhead- Packing $2440
Materials $243850
(To record materials transferred to work in process and factory overhead)
c Work in process- Making $124360
Work in process- Packing $83940
Factory overhead- Making $24080
Factory overhead- Packing $43170
Wages payable $275550
(To record materials transferred to work in process and factory overhead)
d Factory overhead- Making $22700
Factory overhead- Packing $18750
Accumulated depreciation $41450
(To record depreciation expense)
e Factory overhead- Making $4300
Factory overhead- Packing $1720
Prepaid insurance $6020
(To record prepaid insurance expired)
f Work in process- Making $59340
Work in process- Packing $65570
Factory overhead- Making $59340
Factory overhead- Packing $65570
(To record factory overhead applied)
g Work in process- Packing $358790
Work in process- Making $358790
(To record transferred of Production department from making department to packing department )
h Finished goods $564680
Work in process- Packing $564680
(To record transferred of Production department from packing department to finished goods)
i Cost of goods sold $566740
Finished goods $566740
(To record cost of goods sold)

2)

Materials Inventory
Jul 1 Beg. bal. $4640 b 243850
a 263500
Jul 31 End. bal. $24290

Calculation of ending materials inventory= $4640+263500-243850= $24290

Work in Process- Making Department
Jul 1 Beg. bal. $8220 g 358790
b 174060
c 124360
f 59340
Jul 31 End. bal. $7190

Calculation of Ending Work in Process- Making Department= $8220+174060+124360+59340-358790= $7190

Work in Process- Packing Department
Jul 1 Beg. bal. $10720      
b 60540
c 83940
f 65570
g 358790
Jul 31 End. bal. $579560

Calculation of Ending Work in Process- Packing Department= $10720+60540+83940+65570+358790= $579560

Finished Goods Inventory
Jul 1 Beg. bal. $21160 i 566740
h 564680
Jul 31. End. bal. $19100

Calculation of Ending Finished goods inventory= $21160+564680-566740= $19100

3)

Factory overhead- Making department
Jul 1 Beg. bal. $0 f 59340
b 6810
c 24080
d 22700
e 4300
Jul 31. End. bal. $1450

Calculation of Ending Factory overhead- Making Department= $0+6810+24080+22700+4300-59340= $-1450 Credit

Factory overhead- Packing department
Jul 1 Beg. bal. $0 f 65570
b 2440
c 43170
d 18750
e 1720
Jul 31. End. bal. $510

Calculation of Ending Factory overhead- Packing Department= $0+2440+43170+18750+1720-65570= $510 Debit

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Entries for Process Cost System Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed...
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 $19,190 Work in Process—Making 7,460 Work in Process—Packing 9,720 Materials 4,210 Departmental accounts are maintained for factory overhead,...
Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making...
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 $28,170 Work in Process—Making 10,950 Work in Process—Packing 14,270 Materials 6,180 Departmental accounts are maintained for factory overhead, which both have zero balances...
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where...
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories: Finished Goods $62,000 Work in Process-Spinning Department 35,000 Work in Process-Tufting Department 28,500 Materials 17,000 Departmental accounts are maintained for...
PART B – Journal Entries:  Prepare journal entries for the month of March to record the below...
PART B – Journal Entries:  Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry). Raw materials purchases (on credit).  Assume the firm purchased $282,000 worth of raw materials in March. Direct materials used in production:  Mixing Department: $250,000;  Packaging Department: $16,500. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit):  Mixing Department: $60,000;  Packaging Department:  $31,800. Overhead...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $577,800 from the Casting Department. The conversion cost for the period in the Rolling Department is $112,500 ($68,500 factory overhead applied and $44,000 direct labor). The total cost transferred to Finished Goods for the period was $692,700. The Rolling Department had a beginning inventory of $28,000. a1. Journalize the cost of transferred-in materials. Work in Process-Rolling Accounts Payable Cash Factory Overhead-Casting Factory...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $593,800 from the Casting Department. The conversion cost for the period in the Rolling Department is $113,900 ($65,600 factory overhead applied and $48,300 direct labor). The total cost transferred to Finished Goods for the period was $666,400. The Rolling Department had a beginning inventory of $25,400. a1. Journalize the cost of transferred-in materials. a2. Journalize the conversion costs. If an amount box...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $571,500 from the Casting Department. The conversion cost for the period in the Rolling Department is $109,000 ($67,700 factory overhead applied and $41,300 direct labor). The total cost transferred to Finished Goods for the period was $607,000. The Rolling Department had a beginning inventory of $25,900. a1. Journalize the cost of transferred-in materials. a2. Journalize the conversion costs. If an amount box...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel...
Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keystone Steel Company is $560,700 from the Casting Department. The conversion cost for the period in the Rolling Department is $104,400 ($60,100 factory overhead applied and $44,300 direct labor). The total cost transferred to Finished Goods for the period was $690,700. The Rolling Department had a beginning inventory of $28,300. a1. Journalize the cost of transferred-in materials. a2. Journalize the conversion costs. If an amount box...
Entries for Flow of Factory Costs for Process Cost System Sweeties, Inc., manufactures a sugar product...
Entries for Flow of Factory Costs for Process Cost System Sweeties, Inc., manufactures a sugar product by a continuous process involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $467,600, $163,700, and $107,500, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $26,200, and work in process at the end of the period totaled $32,300. a....
Journal Entries: Prepare journal entries for the month of March to record the below transactions (make...
Journal Entries: Prepare journal entries for the month of March to record the below transactions (make sure to use proper journal entry formatting and include a brief description of each entry). Raw materials purchases (on credit). Assume the firm purchased $282,000 worth of raw materials in March. Direct materials used in production: Mixing Department: $250,000; Packaging Department: $16,500. Direct labor used in production (assume not paid in Cash, use the Factory Wages Payable account for the credit): Mixing Department: $60,000;...