FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the
ID: 2570917 • Letter: F
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 $8,300 Work in Process-Spinning Department 2,000 Work in Process-Tufting Department 2,600 Materials 4,800Explanation / Answer
SOLUTION
(A) Journal Entries-
B. Materials = $4,800 + $82,000 - $83,500 = $3,300
Finished goods = $8,300 + 153,200 - 158,000 = $3,500
C. Factory overhead - Spinning department-
= $(300)
Factory overhead - Tufting department-
= $450
Date Accounts title and Explanation Debit ($) Credit ($) Oct.1 Materials 82,000 Accounts payable 82,000 Oct.2 Work in process- Spinning department 42,600 Work in process- Tufting department 34,700 Factory overhead - Spinning department 3,300 Factory overhead - Tufting department 2,900 Materials 83,500 Oct.31 Work in process- Spinning department 26,300 Work in process- Tufting department 17,200 Factory overhead - Spinning department 12,500 Factory overhead - Tufting department 11,900 Wages payable 67,900 Oct.31 Factory overhead - Spinning department 5,300 Factory overhead - Tufting department 3,100 Accumulated depreciation 8,400 Oct.31 Factory overhead - Spinning department 1,000 Factory overhead - Tufting department 800 Prepaid Insurance 1,800 Oct.31 Work in process- Spinning department 22,400 Work in process- Tufting department 18,250 Factory overhead - Spinning department 22,400 Factory overhead - Tufting department 18,250 Oct.31 Work in process- Tufting department 90,000 Work in process- Spinning department 90,000 Oct.31 Finished goods 153,200 Work in process- Tufting department 153,200 Oct. 31 Cost of goods sold 158,000 Finished goods 158,000Related Questions
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