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Design Flooring Carpet Company_Process Costing_Entries and Acccounts

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Question;Design Flooring 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 July 1, Design Flooring;Carpet Company had the following inventories;Finished;Goods...........................................$5,600;Work in Process - Spinning;Department.....900;Work in Process - Tufting;Department......1,400 Materials...........................................................4,200;Departmental accounts are;maintained for factory overhead, and both have zero balances on July 1.;Manufacturing operations for July are summarized as follows;a. Materials purchased on;account $ 84,600;b. Materials requisitioned;for use: Fiber"Spinning Department $ 42,800 Carpet backing"Tufting;Department 34,400 Indirect materials"Spinning Department 3,200 Indirect;materials"Tufting Department 2,800;c. Labor used: Direct;labor"Spinning Department $ 24,200 Direct labor"Tufting Department;18,700 Indirect labor"Spinning Department 12,300 Indirect;labor"Tufting Department 11,900;d. Depreciation charged on;fixed assets: Spinning Department $ 5,300 Tufting Department 3,100;e. Expired prepaid factory;insurance: Spinning Department $ 1,200 Tufting Department 900;f. Applied factory;overhead: Spinning Department $ 21,600 Tufting Department 19,500;g. Production costs;transferred from Spinning Department to Tufting Department $ 87,200;h. Production costs;transferred from Tufting Department to Finished Goods $159,200;i. Cost of goods sold;during the period $160,300;Instructions;Journalize the entries to;record the operations, identifying each entry by letter. Compute the July 31;balances of the inventory accounts. Compute the July 31 balances of the factory;overhead accounts.

 

Paper#37384 | Written in 18-Jul-2015

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