Buena Montana 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, Buena Montana Carpet Company had the following inventories: Finished Goods $50,800 Work in Process-Spinning Department 28,700 Work in Process-Tufting Department 23,400 Materials 13,900 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, $410,000 2 Materials requisitioned for use: Fiber—Spinning Department, $225,500 Carpet backing—Tufting Department, $90,200 Indirect materials—Spinning Department, $37,700 Indirect materials—Tufting Department, $29,800 31 Labor used: Direct labor—Spinning Department, $151,700 Direct labor—Tufting Department, $80,300 Indirect labor—Spinning Department, $14,900 Indirect labor—Tufting Department, $7,500 31 Depreciation charged on fixed assets: Spinning Department, $10,200 Tufting Department, $7,000 31 Expired prepaid factory insurance: Spinning Department, $1,600 Tufting Department, $820 31 Applied factory overhead: Spinning Department, $64,600 Tufting Department, $45,100 31 Production costs transferred from Spinning Department to Tufting Department, $448,500 31 Production costs transferred from Tufting Department to Finished Goods, $661,900 31 Cost of goods sold during the period, $639,100 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 journal explanations. Every line on a journal page is used for debit or credit 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. Enter all amounts as positive numbers. 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Chart of Accounts CHART OF ACCOUNTS Buena Montana Carpet Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process-Spinning Department 142 Work in Process-Tufting Department 151 Factory Overhead-Spinning Department 152 Factory Overhead-Tufting Department 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expense 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expense 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense Journal 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 journal explanations. Every line on a journal page is used for debit or credit 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 Final Questions 2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers. Materials Work in Process: • Spinning Department • Tufting Department Finished Goods 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Factory Overhead: • Spinning Department • Tufting Department

Buena Montana 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, Buena Montana Carpet Company had the following inventories: Finished Goods $50,800 Work in Process-Spinning Department 28,700 Work in Process-Tufting Department 23,400 Materials 13,900 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, $410,000 2 Materials requisitioned for use: Fiber—Spinning Department, $225,500 Carpet backing—Tufting Department, $90,200 Indirect materials—Spinning Department, $37,700 Indirect materials—Tufting Department, $29,800 31 Labor used: Direct labor—Spinning Department, $151,700 Direct labor—Tufting Department, $80,300 Indirect labor—Spinning Department, $14,900 Indirect labor—Tufting Department, $7,500 31 Depreciation charged on fixed assets: Spinning Department, $10,200 Tufting Department, $7,000 31 Expired prepaid factory insurance: Spinning Department, $1,600 Tufting Department, $820 31 Applied factory overhead: Spinning Department, $64,600 Tufting Department, $45,100 31 Production costs transferred from Spinning Department to Tufting Department, $448,500 31 Production costs transferred from Tufting Department to Finished Goods, $661,900 31 Cost of goods sold during the period, $639,100 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 journal explanations. Every line on a journal page is used for debit or credit 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. Enter all amounts as positive numbers. 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Chart of Accounts CHART OF ACCOUNTS Buena Montana Carpet Company General Ledger ASSETS 110 Cash 121 Accounts Receivable 125 Notes Receivable 126 Interest Receivable 131 Materials 141 Work in Process-Spinning Department 142 Work in Process-Tufting Department 151 Factory Overhead-Spinning Department 152 Factory Overhead-Tufting Department 161 Finished Goods 171 Supplies 172 Prepaid Insurance 173 Prepaid Expenses 181 Land 191 Factory 192 Accumulated Depreciation LIABILITIES 210 Accounts Payable 221 Utilities Payable 231 Notes Payable 236 Interest Payable 251 Wages Payable EQUITY 311 Common Stock 340 Retained Earnings 351 Dividends REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 520 Wages Expense 531 Selling Expense 532 Insurance Expense 533 Utilities Expense 534 Supplies Expense 540 Administrative Expense 561 Depreciation Expense-Factory 590 Miscellaneous Expense 710 Interest Expense Journal 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 journal explanations. Every line on a journal page is used for debit or credit 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 Final Questions 2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers. Materials Work in Process: • Spinning Department • Tufting Department Finished Goods 3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers. Factory Overhead: • Spinning Department • Tufting Department

Name: Buena Montana Carpet Company manufactures carpets. Fiber is placed in
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Buena Montana 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

100%

Finished Goods	$50,800
Work in Process-Spinning Department	28,700
Work in Process-Tufting Department	23,400
Materials	13,900

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, $410,000
	2	Materials requisitioned for use:
		Fiber—Spinning Department, $225,500
		Carpet backing—Tufting Department, $90,200
		Indirect materials—Spinning Department, $37,700
		Indirect materials—Tufting Department, $29,800
	31	Labor used:
		Direct labor—Spinning Department, $151,700
		Direct labor—Tufting Department, $80,300
		Indirect labor—Spinning Department, $14,900
		Indirect labor—Tufting Department, $7,500
	31	Depreciation charged on fixed assets:
		Spinning Department, $10,200
		Tufting Department, $7,000
	31	Expired prepaid factory insurance:
		Spinning Department, $1,600
		Tufting Department, $820
	31	Applied factory overhead:
		Spinning Department, $64,600
		Tufting Department, $45,100
	31	Production costs transferred from Spinning Department to Tufting Department, $448,500
	31	Production costs transferred from Tufting Department to Finished Goods, $661,900
	31	Cost of goods sold during the period, $639,100

	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 journal explanations. Every line on a journal page is used for debit or credit 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. Enter all amounts as positive numbers.
3.	Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers.

Chart of Accounts

CHART OF ACCOUNTS

Buena Montana Carpet Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Spinning Department
142	Work in Process-Tufting Department
151	Factory Overhead-Spinning Department
152	Factory Overhead-Tufting Department
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Selling Expense
532	Insurance Expense
533	Utilities Expense
534	Supplies Expense
540	Administrative Expense
561	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense

Journal

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 journal explanations. Every line on a journal page is used for debit or credit 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

Final Questions

2. Compute the January 31 balances of the inventory accounts. Enter all amounts as positive numbers.

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

3. Compute the January 31 balances of the factory overhead accounts. Enter all amounts as positive numbers.

Factory Overhead:
• Spinning Department
• Tufting Department

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.