Port Ormond 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, Port Ormond Carpet Company had the following inventories: Finished Goods $6,500 Work in Process-Spinning Department 1,200 Work in Process-Tufting Department 2,300 Materials 4,100 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, $84,700 2 Materials requisitioned for use: Fiber-Spinning Department, $42,800 Carpet backing-Tufting Department, $34,000 Indirect materials-Spinning Department, $3,400 Indirect materials-Tufting Department, $2,700 31 Labor used: Direct labor-Spinning Department, $26,600 Direct labor-Tufting Department, $17,600 Indirect labor-Spinning Department, $11,900 Indirect labor-Tufting Department, $11,800 31 Depreciation charged on fixed assets: Spinning Department, $5,400 Tufting Department, $4,000 31 Expired prepaid factory insurance: Spinning Department, $1,100 Tufting Department, $800 31 Applied factory overhead: Spinning Department, $22,200 Tufting Department, $18,950 31 Production costs transferred from Spinning Department to Tufting Department, $89,500 31 Production costs transferred from Tufting Department to Finished Goods, $151,400 31 Cost of goods sold during the period, $154,200 Required: 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.

Port Ormond 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, Port Ormond Carpet Company had the following inventories: Finished Goods $6,500 Work in Process-Spinning Department 1,200 Work in Process-Tufting Department 2,300 Materials 4,100 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, $84,700 2 Materials requisitioned for use: Fiber-Spinning Department, $42,800 Carpet backing-Tufting Department, $34,000 Indirect materials-Spinning Department, $3,400 Indirect materials-Tufting Department, $2,700 31 Labor used: Direct labor-Spinning Department, $26,600 Direct labor-Tufting Department, $17,600 Indirect labor-Spinning Department, $11,900 Indirect labor-Tufting Department, $11,800 31 Depreciation charged on fixed assets: Spinning Department, $5,400 Tufting Department, $4,000 31 Expired prepaid factory insurance: Spinning Department, $1,100 Tufting Department, $800 31 Applied factory overhead: Spinning Department, $22,200 Tufting Department, $18,950 31 Production costs transferred from Spinning Department to Tufting Department, $89,500 31 Production costs transferred from Tufting Department to Finished Goods, $151,400 31 Cost of goods sold during the period, $154,200 Required: 1. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. 2. Compute the January 31 balances of the inventory accounts. 3. Compute the January 31 balances of the factory overhead accounts.

Name: Port Ormond Carpet Company manufactures carpets. Fiber is placed in pr
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Description: Port Ormond 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 b

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Finished Goods	$6,500
Work in Process-Spinning Department	1,200
Work in Process-Tufting Department	2,300
Materials	4,100

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, $84,700
	2	Materials requisitioned for use:
		Fiber-Spinning Department, $42,800
		Carpet backing-Tufting Department, $34,000
		Indirect materials-Spinning Department, $3,400
		Indirect materials-Tufting Department, $2,700
	31	Labor used:
		Direct labor-Spinning Department, $26,600
		Direct labor-Tufting Department, $17,600
		Indirect labor-Spinning Department, $11,900
		Indirect labor-Tufting Department, $11,800
	31	Depreciation charged on fixed assets:
		Spinning Department, $5,400
		Tufting Department, $4,000
	31	Expired prepaid factory insurance:
		Spinning Department, $1,100
		Tufting Department, $800
	31	Applied factory overhead:
		Spinning Department, $22,200
		Tufting Department, $18,950
	31	Production costs transferred from Spinning Department to Tufting Department, $89,500
	31	Production costs transferred from Tufting Department to Finished Goods, $151,400
	31	Cost of goods sold during the period, $154,200

	Required:
1.	Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations.
2.	Compute the January 31 balances of the inventory accounts.
3.	Compute the January 31 balances of the factory overhead accounts.

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