Gaffney Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On January 1, Gaffney Soap Company had the following inventories:
Finished Goods .............. $28,440
Work in Process—Making ......... 6,444
Work in Process—Packing ......... 11,610
Materials ............... 4,320
Departmental accounts are maintained for factory overhead, which both have zero balances on January 1.
Manufacturing operations for January are summarized as follows:
a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . $286,020
b. Materials requisitioned for use:
Phosphate—Making Department . . . . . . . . . . . . . . . . . . . . . $202,320
Packaging—Packing Department . . . . . . . . . . . . . . . . . . . . . 66,060
Indirect materials—Making Department . . . . . . . . . . . . . . . . 5,760
Indirect materials—Packing Department . . . . . . . . . . . . . . . . 2,646
c. Labor used:
Direct labor—Making Department . . . . . . . . . . . . . . . . . . . . $122,220
Direct labor—Packing Department . . . . . . . . . . . . . . . . . . . 76,860
Indirect labor—Making Department . . . . . . . . . . . . . . . . . . . 25,740
Indirect labor—Packing Department . . . . . . . . . . . . . . . . . . . 42,660
d. Depreciation charged on fixed assets:
Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,500
Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,920
e. Expired prepaid factory insurance:
Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,680
Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
f. Applied factory overhead:
Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $57,600
Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,800
g. Production costs transferred from Making Dept. to
Packing Dept. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $378,846
h. Production costs transferred from Packing Dept.
to finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $584,460
i. Cost of goods sold during the period . . . . . . . . . . . . . . . . . $594,900

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