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:
|
Finished Goods
|
$13,650
|
|
Work in Process-Making
|
5,310
|
|
Work in Process-Packing
|
6,920
|
|
Materials
|
3,000
|
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
|
$170,050
|
|
b.
|
Materials requisitioned for use
|
|
|
|
|
Phosphate-Making Department
|
$112,330
|
|
|
|
Packaging-Packing Department
|
39,070
|
|
|
|
Indirect materials-Making Department
|
4,400
|
|
|
|
Indirect materials-Packing Department
|
1,580
|
|
c.
|
Labor used
|
|
|
|
|
Direct labor-Making Department
|
$80,250
|
|
|
|
Direct labor-Packing Department
|
54,170
|
|
|
|
Indirect labor-Making Department
|
15,540
|
|
|
|
Indirect labor-Packing Department
|
27,860
|
|
d.
|
Depreciation charged on fixed assets
|
|
|
|
|
Making Department
|
$14,650
|
|
|
|
Packing Department
|
12,100
|
|
e.
|
Expired prepaid factory insurance
|
|
|
|
|
Making Department
|
$2,780
|
|
|
|
Packing Department
|
1,110
|
|
f.
|
Applied factory overhead
|
|
|
|
|
Making Department
|
$38,300
|
|
|
|
Packing Department
|
42,310
|
|
g.
|
Production costs transferred from Making Department to Packing Department
|
$231,550
|
|
h.
|
Production costs transferred from Packing Department to Finished Goods
|
$364,410
|
|
i.
|
Cost of goods sold during the period
|
$365,750
|
Required:
1. Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank.