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

Exercise 40

Entries for process cost system
Preston Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granular. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston Grover Soap Company had the following inventories:

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


Instructions
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.