FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the

Question

FloorMate 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 October 1, FloorMate Carpet Company had the following inventories:

Departmental accounts are maintained for factory overhead, and both have zero balances on October 1. Manufacturing operations for October are summarized as follows:

Finished Goods $7,200 Work in Process-Spinning Department 1,000 Work in Process-Tufting Department 2,400 Materials 4,300

Explanation / Answer

1.

Note: Kindly confirm the exact wording of account titles per the chart of accounts since the same has not been provided with the question.

2.

3.

Date Account Titles and Explanation Debit Credit Oct. 1 Materials 80000 Accounts Payable 80000 (To record materials purchased on account) 2 Work in process - Spinning department 42000 Work in process - Tufting department 34600 Factory overhead - Spinning department 3000 Factory overhead - Tufting department 2900 Materials 82500 (To record materials requisitioned) 31 Work in process - Spinning department 26900 Work in process - Tufting department 17800 Factory overhead - Spinning department 11700 Factory overhead - Tufting department 11800 Wages expense 68200 (To record labor used) 31 Factory overhead - Spinning department 5300 Factory overhead - Tufting department 3500 Accumulated depreciation-Factory 8800 (To record depreciation charged on fixed assets) 31 Factory overhead - Spinning department 1300 Factory overhead - Tufting department 1000 Prepaid insurance 2300 (To record expired prepaid factory insurance) 31 Work in process - Spinning department 21500 Work in process - Tufting department 18850 Factory overhead - Spinning department 21500 Factory overhead - Tufting department 18850 (To record factory overhead applied) 31 Work in process - Tufting department 85000 Work in process - Spinning department 85000 (To record transfer from spinning to tufting department) 31 Finished goods 152600 Work in process - Tufting department 152600 (To record transfer from tufting department to finished goods) 31 Cost of goods sold 155300 Finished goods 155300 (To record cost of goods sold)

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