Compute the October 31 balances of the factory overhead accounts. FloorMate Carp
ID: 2480511 • Letter: C
Question
Compute the October 31 balances of the factory overhead accounts.
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:
Chart of Accounts
Journal
1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.
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2. Compute the October 31 balances of the inventory accounts.
3. Compute the October 31 balances of the factory overhead accounts.
Required: 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles. 2. Compute the October 31 balances of the inventory accounts. 3.Compute the October 31 balances of the factory overhead accounts.
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:
Finished Goods $8,400 Work in Process-Spinning Department 1,600 Work in Process-Tufting Department 2,100 Materials 4,500Departmental accounts are maintained for factory overhead, and both have zero balances on October 1. Manufacturing operations for October are summarized as follows:
Oct. 1 Materials purchased on account, $84,300 2 Materials requisitioned for use: Fiber—Spinning Department, $42,600 Carpet backing—Tufting Department, $34,500 Indirect materials—Spinning Department, $4,000 Indirect materials—Tufting Department, $2,500 31 Labor used: Direct labor—Spinning Department, $27,200 Direct labor—Tufting Department, $18,600 Indirect labor—Spinning Department, $12,200 Indirect labor—Tufting Department, $11,800 31 Depreciation charged on fixed assets: Spinning Department, $5,300 Tufting Department, $3,300 31 Expired prepaid factory insurance: Spinning Department, $1,200 Tufting Department, $1,000 31 Applied factory overhead: Spinning Department, $23,100 Tufting Department, $18,150 31 Production costs transferred from Spinning Department to Tufting Department, $86,000 31 Production costs transferred from Tufting Department to Finished Goods, $150,000 31 Cost of goods sold during the period, $154,500Explanation / Answer
Ans 1 Date Accounts title Post Ref Dr Cr 1-Oct 131 material 131 $84,300 210 Accounts payable 210 $84,300 (Being material purchsed on account) 2-Oct Work in Process-Spinning Department 141 $42,600 Work in Process-Tufting Department 142 34500 131 material $77,100 (being material requisition to WIP) 2-Oct Factory Overhead-Spinning Department 151 4000 Factory Overhead-Tufting Department 152 2500 $6,500 131 material ` (Being indirect material requistion ) 31-Oct Work in Process-Spinning Department 141 $27,200 Work in Process-Tufting Department 142 18600 Wages payable 251 $45,800 (being wages charged to WIP) 31-Oct Factory Overhead-Spinning Department 151 12200 Factory Overhead-Tufting Department 152 11800 Wages payable 251 24000 (Being indirect labor charged to factory overhead ) 31-Oct Factory Overhead-Spinning Department 151 5300 Factory Overhead-Tufting Department 152 3300 Accumulated Depreciation-Factory 192 8600 Factory Overhead-Spinning Department 151 1200 Factory Overhead-Tufting Department 152 1000 Prepaid Insurance 173 2200 Work in Process-Spinning Department 141 23100 Work in Process-Tufting Department 142 18150 Factory Overhead-Spinning Department 151 23100 Factory Overhead-Tufting Department 152 18150 (Being Factory overhead applied) 31-Oct Work in Process-Tufting Department 142 $86,000 Work in Process-Spinning Department 141 $86,000 31-Oct Finished Goods 161 150000 Work in Process-Tufting Department 142 150000 31-Oct Cost of Good Sold 510 150000 Finished Goods 161 150000 Ans 2 October 31 Balances of Inventory account Calculation Materials 5200 4500+84300-77100-6500 Work in Process: • Spinning Department 8500 1600+42600+27200+23100-86000 • Tufting Department 9350 2100+34500+18600+18150+86000-150000 Finished Goods 3900 8400+150000-154500 Ans 3 Factory Overhead balance Factory Overhead: • Spinning Department -400 12200+4000+5300+1200-23100 • Tufting Department 450 2500+11800+3300+1000-18150
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