FloorMate Carpet Company_Process Costing

FloorMate 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 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:

Oct.
1	Materials purchased on account	$ 84,900
2	Materials requisitioned for use:
	Fiber—Spinning Department	$ 43,600
	Carpet backing—Tufting Department	34,100
	Indirect materials—Spinning Department	3,200
	Indirect materials—Tufting Department	2,900
31	Labor used:
	Direct labor—Spinning Department	$ 26,300
	Direct labor—Tufting Department	17,900
	Indirect labor—Spinning Department	12,100
	Indirect labor—Tufting Department	11,700
31	Depreciation charged on fixed assets:
	Spinning Department	$ 5,300
	Tufting Department	3,400
31	Expired prepaid factory insurance:
	Spinning Department	$ 1,200
	Tufting Department	1,000
31	Applied factory overhead:
	Spinning Department	$ 22,000
	Tufting Department	18,700
31	Production costs transferred from Spinning Department to Tufting Department	$ 88,000
31	Production costs transferred from Tufting Department to Finished Goods	$159,000
31	Cost of goods sold during the period	$160,500

Required:

Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.

Compute the October 31 balances of the inventory accounts.

Compute the October 31 balances of the factory overhead accounts.

2. Compute the October 31 balances of the inventory accounts.

Materials		selector 1Credit Debit Credit
Work in Process
-Spinning Department		selector 2Credit Debit Credit
-Tufting Department		selector 3Credit Debit Credit
Finished Goods		selector 4Credit Debit Credit

Points:

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Explanation

3. Compute the October 31 balances of the factory overhead accounts.

Factory Overhead

-Spinning Department

selector 1Debit

Debit

Credit

-Tufting Department

selector 2Credit

Debit

Credit

9 years ago

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