Question

Homepride 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 August 1, Homepride Carpet Company had the following inventories:
Finished Goods................. $ 4,800
Work in Process—Spinning Department ....... 1,200
Work in Process—Tufting Department ...... 1,900
Materials .................. 3,700
Departmental accounts are maintained for factory overhead, and both have zero balances on August 1. Manufacturing operations for August are summarized as follows:


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


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  • CreatedJune 27, 2014
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