Entries for process cost system

 

FloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spin- ning 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:

Finished Goods                                                                         $5,600

Work  in  Process—Spinning Department                  1,500 Work in Process—Tufting  Department                                                                                                                 2,300 Materials                    4,800

Departmental accounts are maintained for factory overhead, and both have zero balances on October 1.

Manufacturing operations for October are summarized as   follows:

 

a.  Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.   Materials requisitioned for  use:	$  84,900
Fiber—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$  43,600
Carpet backing—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	34,100
Indirect materials—Spinning Department  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3,200
Indirect materials—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c.   Labor used:	2,900
Direct labor—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$  26,300
Direct labor—Tufting Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17,900
Indirect labor—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12,100
Indirect labor—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11,700

d.   Depreciation charged on fixed assets:

Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 $    5,300

Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                   3,400

e.   Expired prepaid factory insurance:

Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 $    1,200

Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                   1,000

f.  Applied factory overhead:

 

Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$  22,000
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18,700
g.   Production costs transferred from Spinning Department to Tufting Department  . . . . . . . .	$  88,000
h.   Production costs transferred from Tufting Department to Finished Goods  . . . . . . . . . . . . .  .	$159,000
i.   Cost of goods sold during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   instructions	$160,500

1.     Journalize the entries to record the operations, identifying each entry by letter.

2.     Compute the October 31 balances of the inventory accounts.

3.     Compute the October 31 balances of the factory overhead accounts.