Skip to main content

Preston & Grover Soap Company manufacturing powdered detergent. Phosphate is placed in process in the making department, where it is turned into granulars. The output of the marking is transferred to the Packing Department, where packaging is added at the beginning of the process. Only July 1, Preston & Grover Soap Company had the following inventories: Finished goods $ 13,500 Work in process-making 6,790 Work in process-maxing 7,350 Materials 5,100 Department account are maintain for overhead, which both have zero balances on July 1 Manufacturing operations for July are summarized as follows A. Materials purchased on account $149,800 B. materials requisitioned for use Phosphate-making department $105,700 Packaging-packing department 31,300 Indirect materials-making department 4,980 Indirect materials-packing department 1,530 C. Labor used Direct L-making department 32,400 Direct L-packing department 40,900 Indirect L-making department 15,400 Indirect L-packing department 18,300 D. Depreciation charged on fixed assets Making dept-10,700 Packing dept-7,900 E. Expired prepaid factory insurance Making dept-2,000 Packing dept-1,500 F. Applied factory overhead Making dept-32,570 Packing dept-30,050 G. Production costs transferred from Making dept to packing dept 166,790 H. Production costs transferred from packing dept to Finished Goods 263,400 I. Cost of goods sold during the period-265,200 Instructions 1. Journalize the entries to record the operations, identifying each entry by letter 2. Compute the July 31 balances of the inventory accounts 3. Compute the July 31 balances of the factory overhead accounts

Question

Preston & Grover Soap Company
manufacturing powdered detergent. Phosphate is placed in process in the
making department, where it is turned into granulars. The output of the
marking is transferred to the Packing Department, where packaging is
added at the beginning of the process. Only July 1, Preston & Grover
Soap Company had the following inventories:
Finished goods $ 13,500 Work in process-making 6,790 Work in process-maxing 7,350
Materials 5,100

Department account are maintain for overhead, which both have zero balances on July 1

Manufacturing operations for July are summarized as follows

A. Materials purchased on account $149,800
B. materials requisitioned for use
Phosphate-making department $105,700
Packaging-packing department 31,300
Indirect materials-making department 4,980
Indirect materials-packing department 1,530
C. Labor used
Direct L-making department 32,400
Direct L-packing department 40,900
Indirect L-making department 15,400
Indirect L-packing department 18,300
D. Depreciation charged on fixed assets
Making dept-10,700
Packing dept-7,900
E. Expired prepaid factory insurance
Making dept-2,000
Packing dept-1,500
F. Applied factory overhead
Making dept-32,570
Packing dept-30,050
G. Production costs transferred from Making dept to packing dept 166,790
H. Production costs transferred from packing dept to Finished Goods 263,400
I. Cost of goods sold during the period-265,200

Instructions
1. Journalize the entries to record the operations, identifying each entry by letter
2. Compute the July 31 balances of the inventory accounts
3. Compute the July 31 balances of the factory overhead accounts

Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
Not helpful? See similar books
Financial And Managerial Accounting
Financial And Managerial Accounting
Process Cost Systems. 5PB
Learn more about
Process Costing
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Debt ratio, Ratio of Liabilities to Stockholders' Equity, and Times Interest Earned Hasbro (HAS) and...

A: Click to see the answer

Q: Critically analyze the effectiveness of six steps which are used for an effective industry and firm ...

A: There are generally six steps to developing an effective analysis of financial statements. 1. Identi...

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,800,000, 8%, ...

A: Discount = Face value - Cash Discount = $7,800,000 - $6,791,633 Discount = $1,008,367

Q: ABC Distributing Company sells small appliances to hardware stores. The President of the Company thi...

A: Current Credit policy= 1/10, net 30 New Policy= 3/10, net 50 Current % of customers availing the dis...

Q: A stock just paid a dividend of $2.09. The dividend is expected to grow at 28.27% for three years an...

A: Value of stock = $ 31.78

Q: On January 1, 20x1, an entity granted a franchise to a franchisee. The franchise agreement required ...

A: SOLUTION- AS PER FASB 45 ACCOUNTING FOR FRANCHISE FEE REVENUE , THE REVENUE FROM THE FRANCHISE FEE S...

Q: When DeSoto Water Works purchased equipment at the end of 2020 at a cost of $64,000, the company deb...

A: No. General Journal Debit Credit         1.  Correct Entry:        Equipment $64,000        ...

Q: Abbey Manufacturing is considering an investment in a new automated manufacturing system. The new sy...

A: The payback period is the time a company expects it would take to recover its investment.  Here, th...

Q: Khalifa Construction's manufacturing costs for August when production was 1,000 units appear below: ...

A: Flexible budget is that budget in which variable costs changes with change in level of activity. Fix...

Q: Fundo entered into a 20-year operating lease for a property on 1 October 2000 which has a remaining ...

A: Lease agreement is the agreement which is giving right to use the property for the mentioned time an...

Q: true or false A statement of cash flows prepared by the indirect method will disclose the cash flows...

A: Indirect method of cash flow statement involves a reconciliation from profit before tax, adjusting i...

Q: geNOWv2 | Online teachin x E Grade Calculator Assignment/takeAssignmentMain.do?invoker=&takeAssignme...

A: Self-employment tax is a combination of Social Security and Medicare taxes. Here's how much it is, h...

Q: After paying off a car loan or credit card, don’t remove this amount from your budget. Instead, inve...

A: Future Value - Future value is the future dollar amount of a series of payments plus interest. Futur...

Q: Accounts Receivable Analysis The following data are taken from the financial statements of Rise and ...

A: Formulas -  Average accounts recievables = (opening accounts recievables + closing accounts recievab...

Q: st page of the chapter. 2. Which of the following would result in the recognition of revenue? a. A m...

A: Revenue : Revenue is the income generated from normal business operations. In other words it is the ...

Q: Company X has the following inventory records for the month ending July 31, 2013:   Units U...

A: Cost of goods sold (COGS) represents the cost of those goods that are being sold by the entity. Endi...

Q: The sole proprietorship business of Individual M purchased a machinery amounting to $30,000. The mac...

A: Double Declining Method is a method of depreciation that uses a rate that is twice as much as the ra...

Q: Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The followi...

A: Depreciation:- Depreciation is defined as decrease in the value of asset due to wear, tear and its u...

Q: Q1. Jamal started his own business on May 1,2010. The following accounts selected from his trial b...

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in ...

Q: Please answer this question correctly

A: Journal entry is the process of recording the business transactions in the books of accounts for the...

Q: Please show work.

A: Manufacturing cost per unit (Absorption costing) = Variable manufacturing costs + Total fixed manufa...

Q: Sales of industrial vacuum cleaners at Yarena Supply CO. over the past 13 months are as follows:   ...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2) (Do not round ...

A: Given, Rate=8% per annum4 quarters per year=2% per quarterPeriod=3 years×4 quarters per year=12 time...

Q: The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows: ...

A: cash flow statement help in analyzing how cash is moving in the organization, what are the source of...

Q: On January 1, 2016, the partners Carlo, Diego, and Edgar who share profits and losses in the ratio o...

A: A liquidation of a partnership is the process of paying off all the liabilities, selling assets, and...

Q: 18 Your company purchased an asset with a total cost of $1,000,000.  The asset has an expected usefu...

A: Assets Book value = Equipment cost - Accumulated depreciation Assets Book value = $1,000,000 - Accum...

Q: Is disaster insurance unfair to insurance companies ? Explain your answer and provide an example.

A: Disaster Insurance The meaning of disaster insurance is is different from the life insurance which a...

Q: Raynolde Company uses a periodic inventory system. At the end of 2016, the following information is ...

A: Periodic system is one of the techniques of reporting inventory in the books. In this, the records a...

Q: How much must be deposited today in a savings bank to accumulate Php 100,000 after 5 years if the mo...

A: Here  we need to use the accumulated value formula, which is given by,  A = P(1+r)n Where ,  A = acc...

Q: Problem 1 (Liquidity Ratios) You have been asked to evaluate the liquidity position of Burgos Fitnes...

A: The details are from company  annual report: Cash = 130,000 Trading Investments = 60,000 Accounts Re...

Q: Please answer question correctly

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with t...

Q: Is property, plant and equipment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are curr...

Q: Accutune Audio reported the following amounts in its December 31, 2013, and 2012 financial statement...

A: Ratio analysis means where different ratio of various years of years companies has been compared and...

Q: Consider each of the following independent situations. Should a company report the goods in its inve...

A: Inventory is the amount of goods held by the organisation. These are part of current assets under th...

Q: Marion, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares...

A: Annual Preferred Dividend = 5,000 shares x $100 x 5% = $25,000 Preferred dividends are given as nonc...

Q: 

A: Partnership is a form of business in which two or more than two partners invest money, run business ...

Q: Prepare the set of consolidated financial statements at the end of the year.

A: Given Information: Consolidated financial statements of Popoy corporation and Sia company.

Q: Blossom Company reported the following liabilities in the statementAccounts payable 1,000,000Bonds p...

A: The monetary liabilities represent the obligation of the company that has to be paid in terms of mon...

Q: Gera Corporation owns two financial investments in the shares of listed companies. Details of which ...

A: The details of investment of a company  are as follows:  Investment  1 – Acquired on September 1, 20...

Q: Is intangible assets is classified as current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are curr...

Q: REQUIRED Use the information provided below to answer each of the following questions independently:...

A: Breakeven Point = Fixed CostsContribution per unit   Contribution Per Unit = Sales - Variable Cost

Q: Accounting Question

A: Bank Reconciliation - It is the process of matching the bank balance with entity's accounting record...

Q: Cash flow of accounts receivable.   Myers and​ Associates, a famous law firm in​ California, bills i...

A: Projected sales are an estimate of revenue which is expected to be earned by the company in the near...

Q: Please answer with the work shown. Thank you!

A: Formula: Gross profit = Sales - cost of goods sold. sales per unit = Total sales / number of units s...

Q: NBP Sarmaya Izafa Fund is attempting to balance one of the bond portfolios under its management.  Th...

A: Note - first two parts are being answered. Please post a separate question for the balance parts. So...

Q: 1. Assume that Crandall’s stockholders’ equity on January 1, 2013 was $132,000.  Crandall did not is...

A: Stockholders' Equity (A)  $       132,000 Common Stock (B)  $          95,000 Retained Earnings ...

Q: attached

A: Click to see the answer

Q: Victor and Roberta Sanchez file jointly and had a combined income of $87,700 last year. They contrib...

A: the tax rate for the employees who are married have the following slab rates: TAXABLE INCOME TAX ...

Q: Assume I purchase $750,000,000 of 20-year, fixed-rate residential mortgages with an average interest...

A: This question is based on the concept of MBO i.e. Mortgage based obligation.

Q: In 2019, Edward Company purchased equity securities as a trading investment. For the year ended Dece...

A: Workings:

Knowledge Booster
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
  • Financial And Managerial Accounting
    Accounting
    ISBN:9781337902663
    Author:WARREN, Carl S.
    Publisher:Cengage Learning,
    Managerial Accounting
    Accounting
    ISBN:9781337912020
    Author:Carl Warren, Ph.d. Cma William B. Tayler
    Publisher:South-Western College Pub
    Cornerstones of Cost Management (Cornerstones Ser...
    Accounting
    ISBN:9781305970663
    Author:Don R. Hansen, Maryanne M. Mowen
    Publisher:Cengage Learning
  • Principles of Cost Accounting
    Accounting
    ISBN:9781305087408
    Author:Edward J. Vanderbeck, Maria R. Mitchell
    Publisher:Cengage Learning
    Managerial Accounting: The Cornerstone of Busines...
    Accounting
    ISBN:9781337115773
    Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
    Publisher:Cengage Learning
    Principles of Accounting Volume 2
    Accounting
    ISBN:9781947172609
    Author:OpenStax
    Publisher:OpenStax College
  • Financial And Managerial Accounting
    Accounting
    ISBN:9781337902663
    Author:WARREN, Carl S.
    Publisher:Cengage Learning,
    Managerial Accounting
    Accounting
    ISBN:9781337912020
    Author:Carl Warren, Ph.d. Cma William B. Tayler
    Publisher:South-Western College Pub
    Cornerstones of Cost Management (Cornerstones Ser...
    Accounting
    ISBN:9781305970663
    Author:Don R. Hansen, Maryanne M. Mowen
    Publisher:Cengage Learning
    Principles of Cost Accounting
    Accounting
    ISBN:9781305087408
    Author:Edward J. Vanderbeck, Maria R. Mitchell
    Publisher:Cengage Learning
    Managerial Accounting: The Cornerstone of Busines...
    Accounting
    ISBN:9781337115773
    Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
    Publisher:Cengage Learning
    Principles of Accounting Volume 2
    Accounting
    ISBN:9781947172609
    Author:OpenStax
    Publisher:OpenStax College