Entries for process cost system
SuperClassFloorMate Carpet Company manufactures carpets. Fiber is placed in process in the Spin- ning 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 October 1, FloorMate Carpet Company had the following inventories:
Finished Goods $5,600
Work in Process—Spinning Department 1,500 Work in Process—Tufting Department 2,300 Materials 4,800
Departmental accounts are maintained for factory overhead, and both have zero balances on October 1.
Manufacturing operations for October are summarized as follows:
a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. Materials requisitioned for use: | $ 84,900 |
Fiber—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 43,600 |
Carpet backing—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 34,100 |
Indirect materials—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,200 |
Indirect materials—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Labor used: | 2,900 |
Direct labor—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 26,300 |
Direct labor—Tufting Department. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,900 |
Indirect labor—Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,100 |
Indirect labor—Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,700 |
d. Depreciation charged on fixed assets:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,300
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400
e. Expired prepaid factory insurance:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,200
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
f. Applied factory overhead:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $ 22,000 |
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18,700 |
g. Production costs transferred from Spinning Department to Tufting Department . . . . . . . . | $ 88,000 |
h. Production costs transferred from Tufting Department to Finished Goods . . . . . . . . . . . . . . | $159,000 |
i. Cost of goods sold during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
instructions | $160,500 |
1. Journalize the entries to record the operations, identifying each entry by letter.
2. Compute the October 31 balances of the inventory accounts.
3. Compute the October 31 balances of the factory overhead accounts.
- 8 years ago
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- entries_for_process_cost_system.doc