Financial and Managerial Accounting: PR20-1A Design Flooring Carpet Company manufactures carpets

Financial and Managerial Accounting
PR20-1A Entries for process cost system
Design Flooring 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 July 1, Design Flooring Carpet Company had the following inventories:
Finished Goods 5,600
Work in Process - Spinning Department 900
Work in Process - Tufting Department 1,400
Materials 4,200

Departmental accounts are maintained for factory overhead, and both have zero balances on July 1. Manufacturing operations for July are summarized as follows:
a. Materials purchased on account 84,600
b. Materials requisitioned for use:
Fiber"Spinning Department 42,800
Carpet backing"Tufting Department 34,400
Indirect materials"Spinning Department 3,200
Indirect materials"Tufting Department 2,800
c. Labor used:
Direct labor"Spinning Department 24,200
Direct labor"Tufting Department 18,700
Indirect labor"Spinning Department 12,300
Indirect labor"Tufting Department 11,900
d. Depreciation charged on fixed assets:
Spinning Department 5,300
Tufting Department 3,100
e. Expired prepaid factory insurance:
Spinning Department 1,200
Tufting Department 900
f. Applied factory overhead:
Spinning Department 21,600
Tufting Department 19,500
g. Production costs transferred from Spinning Department to Tufting Department $ 87,200
h. Production costs transferred from Tufting Department to Finished Goods $159,200
i. Cost of goods sold during the period $160,300

1. Journalize the entries to record the operations, identifying each entry by letter.
2. Compute the July 31 balances of the inventory accounts.
3. Compute the July 31 balances of the factory overhead accounts.
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