Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 36

Entries for process cost system
FloorMate Carpet Company manufacturers 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:

Departmental accounts are maintained for factory overhead, and both have zero balances on October 1.
Manufacturing operations for October are summarized as follows:

Instructions
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.