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Entries for Process Cost System Cincinnati Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories: Finished Goods $5,410 Work in Process-Making $2,100 Work in Process-Packing Materials $2,740 $1,190 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $67,410 b. Materials requisitioned for use Phosphate-Making Department Packaging-Packing Department $44,530 $15,490 Indirect materials--Making Department $1,740 Indirect materials--Packing Department $620 c. Labor used Direct labor--Making Department $31,810 Direct labor--Packing Department $21,470 Indirect labor-Making Department $6,160 Indirect labor-Packing Department $11,040 d. Depreciation charged on fixed assets Making Department $5,810 Packing Department $4,800 e. Expired prepaid factory insurance Making Department $1,100 Packing Department 5440 1. Applied factory overhead Making Department $16,180 Packing Department $16,770 g. Production costs transferred from Making Department to Packing Department $91,780 h. Production costs transferred from Packing Department to Finished Goods $144,450 i. Cost of goods sold during the period $144,980 1.) Compute the July 31 balances of the inventory accounts. -Materials S -Work in Process--Making Department S -Work in Process--Packing Department S -Finished Goods S 2.) Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. -Factory Overhead-Making Department SCredit or Debit Item -Item Factory Overhead-Packing Department SCredit or Debit Item

Entries for Process Cost System Cincinnati Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories: Finished Goods $5,410 Work in Process-Making $2,100 Work in Process-Packing Materials $2,740 $1,190 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $67,410 b. Materials requisitioned for use Phosphate-Making Department Packaging-Packing Department $44,530 $15,490 Indirect materials--Making Department $1,740 Indirect materials--Packing Department $620 c. Labor used Direct labor--Making Department $31,810 Direct labor--Packing Department $21,470 Indirect labor-Making Department $6,160 Indirect labor-Packing Department $11,040 d. Depreciation charged on fixed assets Making Department $5,810 Packing Department $4,800 e. Expired prepaid factory insurance Making Department $1,100 Packing Department 5440 1. Applied factory overhead Making Department $16,180 Packing Department $16,770 g. Production costs transferred from Making Department to Packing Department $91,780 h. Production costs transferred from Packing Department to Finished Goods $144,450 i. Cost of goods sold during the period $144,980 1.) Compute the July 31 balances of the inventory accounts. -Materials S -Work in Process--Making Department S -Work in Process--Packing Department S -Finished Goods S 2.) Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. -Factory Overhead-Making Department SCredit or Debit Item -Item Factory Overhead-Packing Department SCredit or Debit Item

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entries for Process Cost System Cincinnati Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories: Finished Goods $5,410 Work in Process-Making $2,100 Work in Process-Packing Materials $2,740 $1,190 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $67,410 b. Materials requisitioned for use Phosphate-Making Department Packaging-Packing Department $44,530 $15,490 Indirect materials--Making Department $1,740 Indirect materials--Packing Department $620 c. Labor used Direct labor--Making Department $31,810 Direct labor--Packing Department $21,470 Indirect labor-Making Department $6,160 Indirect labor-Packing Department $11,040 d. Depreciation charged on fixed assets Making Department $5,810 Packing Department $4,800 e. Expired prepaid factory insurance Making Department $1,100 Packing Department 5440 1. Applied factory overhead Making Department $16,180 Packing Department $16,770 g. Production costs transferred from Making Department to Packing Department $91,780 h. Production costs transferred from Packing Department to Finished Goods $144,450 i. Cost of goods sold during the period $144,980 1.) Compute the July 31 balances of the inventory accounts. -Materials S -Work in Process--Making Department S -Work in Process--Packing Department S -Finished Goods S 2.) Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. -Factory Overhead-Making Department SCredit or Debit Item -Item Factory Overhead-Packing Department SCredit or Debit Item
Transcribed Image Text:Entries for Process Cost System Cincinnati Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories: Finished Goods $5,410 Work in Process-Making $2,100 Work in Process-Packing Materials $2,740 $1,190 Departmental accounts are maintained for factory overhead, which both have zero balances on July 1. Manufacturing operations for July are summarized as follows: a. Materials purchased on account $67,410 b. Materials requisitioned for use Phosphate-Making Department Packaging-Packing Department $44,530 $15,490 Indirect materials--Making Department $1,740 Indirect materials--Packing Department $620 c. Labor used Direct labor--Making Department $31,810 Direct labor--Packing Department $21,470 Indirect labor-Making Department $6,160 Indirect labor-Packing Department $11,040 d. Depreciation charged on fixed assets Making Department $5,810 Packing Department $4,800 e. Expired prepaid factory insurance Making Department $1,100 Packing Department 5440 1. Applied factory overhead Making Department $16,180 Packing Department $16,770 g. Production costs transferred from Making Department to Packing Department $91,780 h. Production costs transferred from Packing Department to Finished Goods $144,450 i. Cost of goods sold during the period $144,980 1.) Compute the July 31 balances of the inventory accounts. -Materials S -Work in Process--Making Department S -Work in Process--Packing Department S -Finished Goods S 2.) Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance. -Factory Overhead-Making Department SCredit or Debit Item -Item Factory Overhead-Packing Department SCredit or Debit Item
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