Preston & Grover 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 July 1, Preston & Grover Soap Company had the following inventories:

Finished Goods .................... $ 13,500

Work in Process—Making ......6,790

Work in Process—Packing ......7,350

Materials .....................................5,100

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.

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b. Matrials requisitioned for use: c. Labor used: Direct labor-Making Department . .. . 32,400 d. Depreciation charged on fixed assets: 7.900 e. Expired prepaid factory insurance: f. Applied factory overhead: Making Department. ...$ 32,570 g. Production costs transferred from Making Department to Packing Department h. Production costs transferred from Packing Department to Finished Goods... $166,790 $263,400