Entries for Process Cost System Preston & Grover Soap Company manufactures powde
ID: 2548444 • Letter: E
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 Work in Process-Making Work in Process-Packing Materials 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 b. Materials requisitioned for use $29,400 11,420 14,890 6,450 $366,150 Phosphate-Making Department Packaging-Packing Department Indirect materials-Making Department Indirect materials-Packing Department $241,870 84,130 9,460 3,390 c. Labor used Direct labor-Making Department Direct labor-Packing Department Indirect labor-Making Department Indirect labor-Packing Department $172,800 116,630 33,460 59,990 d. Depreciation charged on fixed assets Making Department $31,550 Packing Department 26,050Explanation / Answer
Answer
Opening balances and Journal Entry Serial no.
Materials
Work In Process - Making Department
Work In Process - Packing department
Finished Goods
Factory Overhead - Making Department
Factory Overhead - Packing Department
Beginning Balance
6450
11420
14890
29400
a.
366150
b.
-338850
241870
84130
9460
3390
c.
172800
116630
33460
59990
d.
31550
26050
5980
2390
f.
82460
91110
-82460
-91110
g.
-498550
498550
h.
-784640
784640
Total
$33750
$10000
$20670
$814040
$-2010
$710
Requirement 2: Inventory balances
Balances on July 31 [Inventory Accounts]
Materials
$33,750
Work In Process - Making Department
$10,000
Work In Process - Packing department
$20,670
Finished Goods
$814,040
Requirement 3: factory Overheads balances
Factory Overhead - Making Department
$-2010
Credit
Factory Overhead - Packing Department
$710
Debit
Opening balances and Journal Entry Serial no.
Materials
Work In Process - Making Department
Work In Process - Packing department
Finished Goods
Factory Overhead - Making Department
Factory Overhead - Packing Department
Beginning Balance
6450
11420
14890
29400
a.
366150
b.
-338850
241870
84130
9460
3390
c.
172800
116630
33460
59990
d.
31550
26050
5980
2390
f.
82460
91110
-82460
-91110
g.
-498550
498550
h.
-784640
784640
Total
$33750
$10000
$20670
$814040
$-2010
$710
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.