Textbook Problem

Entries for process cost system

Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it U spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at I he beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:

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

Manufacturing operations for January are summarized as follows:

Instructions

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