Question

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 $27,550 Work in Process-Making 10,710 Work in Process --Packing 13,960 Materials 6,050 < 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 $343,170 b. Materials requisitioned for use: Phosphate-- Making Department $226,690 Packaging--Packing Department 78,850 Indirect materials-Making Department 8,870 Indirect materials-Packing Department 3,180

Answer 1

Answer Page No 0 2 work in process work in process Finished Materials inventory inventory Making department Packing department goods Beginning balance $6050 $10,710 $13,960 $07,550 Debits $343,170 $465,920 $ 740,810 $135,390 credits (15319,590) (467,260) C# 735,390) († 738,080) Erding balance $31,630 $9370 $ 19380 $24,860 Materials, Credits $006,690 + 78,850 + 8870+ 3180 - = $ 314,590 work in process inventory - Making departments 226,690 + 161,950 7 77280 $ 465,920 workin process inventory. Packing departosent 98850 +109,310 + 85390 + 467,260 $740810 July 31 balances of inventory accounts, Materials - $3,630]

work in process - Malsing department Page No ③ $9370 49035 - โก ProC 4% 1619,380 Packing depantonert $24,860 Finished goods た Beginning balance Factory overhead Factory overhead - Making department Packing department 10 to $75400 $86,060 ($ 77,280) (685,390) ($1880 $ 670 Debils Credits Ending balance Factory overhead. Making department debită 8870+ 31,360 + 29,570+ 5600 $75400 Factory overhead - Packing department = 380 + 56220 +24920 +2240 $ 86,060 Ending balance of factory overhead – Making department ($1880 Ending balance of Factory overhead – Packing departmento 4670