Please help me figure out these Two Problems. I am not sure how to answer the la

Question

Please help me figure out these Two Problems. I am not sure how to answer the last two questions.# 2 & 3.

Entries for Process Cost System

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:

Departmental accounts are maintained for factory overhead, which both have zero balances on July 1.

Manufacturing operations for July are summarized as follows:

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.

Finished Goods $5,410 Work in Process—Making 2,100 Work in Process—Packing 2,740 Materials 1,190

Explanation / Answer

Answers:

2) Balance of

material inventory = $6220

WIP - Making = $1840

WIP- Packing = $ 4070

Finished Goods = $ 4880

3)

Factory Overhead - Making = $370 - debit item (overapplied)

Factory overhead - packing = $ 130 credit item (Underapplied)

Material Inventory Date particulars amount Date particulars amount Balance c/d 1190 WIP - Making 44530 Accounts payable 67410 WIP - Packing 15490 Factory Overhead - making 1740 Factory overhead- packing 620 Balance c/f 6220 68600 68600 Work in process - Making Date particulars amount Date particulars amount Balance c/d 2100 WIP packing - transferred 91780 Material inventory 44530 Balance c/f 1840 cash-direct labour 31810 Factory overhead - making 15180 93620 93620 WIP - Packing Date particulars amount Date particulars amount balance c/d 2740 Finished goods 144450 Material inventory 15490 Balance c/f 4070 Cash - direct labour 21740 Factory overhead - packing 16770 WIP - Making (transferred) 91780 148520 148520 Factory overhead - Making Date particulars amount Date particulars amount material inventory 1740 WIP - making 15180 cash- indirect labour 6160 accumulated depreciation 5810 prepaid factory insurance 1100 Cost of goods sold - Overapplied 370 15180 15180 Factory overhead - packing Date particulars amount Date particulars amount Material inventory 620 WIP-Packing 16770 cash-indirect labour 11040 Cost of goods sold-underapplied 130 accumulated depreciation 4800 prepaid factory insurance 440 16900 16900 Finished Goods Date particulars amount Date particulars amount Balance c/d 5410 Cost of goods sold 144980 WIP-Packing 144450 Balnce c/f 4880 149860 149860 Cost of Goods sold Date particulars amount Date particulars amount Finished goods 144980 Factory-overhead-making 370 Factory overhead- packing 130 Balance c/f 144740 145110 145110

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