Reference no: EM13692720
Cincinnati 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 the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories:
Finished Goods $10,090
Work in Process-Making 3,920
Work in Process-Packing 5,110
Materials 2,210
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 $125,620
b. Materials requisitioned for use
Phosphate-Making Department $82,980
Packaging-Packing Department 28,860
Indirect materials-Making Department 3,250
Indirect materials-Packing Department 1,160
c. Labor used
Direct labor-Making Department $59,290
Direct labor-Packing Department 40,020
Indirect labor-Making Department 11,480
Indirect labor-Packing Department 20,580
d. Depreciation charged on fixed assets
Making Department $10,820
Packing Department 8,940
e. Expired prepaid factory insurance
Making Department $2,050
Packing Department 820
f. Applied factory overhead
Making Department $28,290
Packing Department 31,260
g. Production costs transferred from Making Department to Packing Department $171,050
h. Production costs transferred from Packing Department to Finished Goods $269,210
i. Cost of goods sold during the period $270,190
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.
Compute the July 31 balances of the inventory accounts.
Materials $
Work in Process-Making Department $
Work in Process-Packing Department $
Finished Goods $
3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance.
Factory Overhead-Making Department $ ______ Credit or Debit
Factory Overhead-Packing Department $ ______ Credit or Debit