Finished Goods $62,000 Work in Process-Spinning Department Work in Process-Tufting Department 35,000 28,500 Materials 17,000 A. Materials purchased on account.. B. Materials requisitioned for use: Fiber-Spinning Department. Carpet backing-Tufting Department. Indirect materials-Spinning Department Indirect materials-Tufting Department C.Labor used: $500,000 $275,000 110,000 46,000 39,500 Direct labor-Spinning Department.. Direct labor-Tufting Department... Indirect labor-Spinning Department . Indirect labor-Tufting Department. D. Depreciation charged on fixed assets: Spinning Department. Tufting Department... E. Expired prepaid factory insurance: Spinning Department. Tufting Department... F. Applied factory overhead: Spinning Department. Tufting Department... G. Production costs transferred from Spinning Department to Tufting Department H. Production costs transferred from Tufting Department to Finished Goods... L Cost of goods sold during the period. $185,000 98,000 18,500 9,000 $ 12,500 8,500 $ 2,00 1,000 $ 80,000 55,000 $547,000 $807,200 $795,200

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Chapter1: Financial Statements And Business Decisions
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Entries for process cost system 

Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it U spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at I the beginning of the process and the process is completed .On January 1, Port Ormond Carpet Company had the following inventories:

 

Departmental accounts are maintained for factory overhead, and both have zero balances on January 1.

Manufacturing operations for January are summarized as follows:

Instructions

1.Journalize the entries to record the operations, identifying each entry by letter.

2. Compute the January 31 balances of the inventory accounts.

3. Compute the January 31 balances of the factory overhead accounts

 

Finished Goods
$62,000
Work in Process-Spinning Department
Work in Process-Tufting Department
35,000
28,500
Materials
17,000
Transcribed Image Text:Finished Goods $62,000 Work in Process-Spinning Department Work in Process-Tufting Department 35,000 28,500 Materials 17,000
A. Materials purchased on account..
B. Materials requisitioned for use:
Fiber-Spinning Department.
Carpet backing-Tufting Department.
Indirect materials-Spinning Department
Indirect materials-Tufting Department
C.Labor used:
$500,000
$275,000
110,000
46,000
39,500
Direct labor-Spinning Department..
Direct labor-Tufting Department...
Indirect labor-Spinning Department .
Indirect labor-Tufting Department.
D. Depreciation charged on fixed assets:
Spinning Department.
Tufting Department...
E. Expired prepaid factory insurance:
Spinning Department.
Tufting Department...
F. Applied factory overhead:
Spinning Department.
Tufting Department...
G. Production costs transferred from Spinning Department to Tufting Department
H. Production costs transferred from Tufting Department to Finished Goods...
L Cost of goods sold during the period.
$185,000
98,000
18,500
9,000
$ 12,500
8,500
$ 2,00
1,000
$ 80,000
55,000
$547,000
$807,200
$795,200
Transcribed Image Text:A. Materials purchased on account.. B. Materials requisitioned for use: Fiber-Spinning Department. Carpet backing-Tufting Department. Indirect materials-Spinning Department Indirect materials-Tufting Department C.Labor used: $500,000 $275,000 110,000 46,000 39,500 Direct labor-Spinning Department.. Direct labor-Tufting Department... Indirect labor-Spinning Department . Indirect labor-Tufting Department. D. Depreciation charged on fixed assets: Spinning Department. Tufting Department... E. Expired prepaid factory insurance: Spinning Department. Tufting Department... F. Applied factory overhead: Spinning Department. Tufting Department... G. Production costs transferred from Spinning Department to Tufting Department H. Production costs transferred from Tufting Department to Finished Goods... L Cost of goods sold during the period. $185,000 98,000 18,500 9,000 $ 12,500 8,500 $ 2,00 1,000 $ 80,000 55,000 $547,000 $807,200 $795,200
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