1 answer

Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where...

Question:

Port Ormond 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 January 1, Port Ormond Carpet Company had the following inventories:

Finished Goods $8,300
Work in Process-Spinning Department 2,000
Work in Process-Tufting Department 2,600
Materials 4,800

Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:

Jan. 1 Materials purchased on account, $82,000
2 Materials requisitioned for use:
Fiber-Spinning Department, $42,600
Carpet backing-Tufting Department, $34,700
Indirect materials-Spinning Department, $3,300
Indirect materials-Tufting Department, $2,900
31 Labor used:
Direct labor-Spinning Department, $26,300
Direct labor-Tufting Department, $17,200
Indirect labor-Spinning Department, $12,500
Indirect labor-Tufting Department, $11,900
31 Depreciation charged on fixed assets:
Spinning Department, $5,300
Tufting Department, $3,100
31 Expired prepaid factory insurance:
Spinning Department, $1,000
Tufting Department, $800
31 Applied factory overhead:
Spinning Department, $22,400
Tufting Department, $18,250
31 Production costs transferred from Spinning Department to Tufting Department, $90,000
31 Production costs transferred from Tufting Department to Finished Goods, $153,200
31 Cost of goods sold during the period, $158,000
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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
2. Compute the January 31 balances of the inventory accounts.*
3. Compute the January 31 balances of the factory overhead accounts.*

*Enter your amounts in positive value.

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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value.

Materials
Work in Process:
• Spinning Department
• Tufting Department
Finished Goods

3. Compute the January 31 balances of the factory overhead accounts. Enter your amounts in positive value.

Factory Overhead:
• Spinning Department
• Tufting Department

Answers

pagl.-? from the given data Item Account materials Accounts payable .. Debiti credit 32000 !.. 82,000 work in progress-spinniItems A cleant credit Factory overhead-sphoning Factory overhead-zulting prepaid insurance . Debit 1,000 - 800 1,800 ES cvortDebit pdg13 I coedit Estem Account *3) materials work in process-spinning work in process- tufting Finished Goods 3,300. 3,30page-4 Dehet I credit 1 DL - 17,200 OHapplied 18,250 End belan-9,550 Fished Goods I opening - 8,300 Wip packing - 1,53,200 Enpre poald - 800 End belance-450 - لاے

.

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