G&P 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 December 1, G&P Soap Company had the following inventories:

Finished Goods ...... $14,500

Work in Process—Making ... 5,670

Work in Process—Packing ... 7,230

Materials .......... 3,200

Departmental accounts are maintained for factory overhead, which both have zero balances on December 1.

Manufacturing operations for December are summarized as follows:

a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $167,900

b. Materials requisitioned for use:

Phosphate—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $114,200

Packaging—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,500

Indirect materials—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100

Indirect materials—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,580

c. Labor used:

Direct labor—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 79,400

Direct labor—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,200

Indirect labor—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

Indirect labor—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,900

d. Depreciation charged on fixed assets:

Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,800

Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,300

e. Expired prepaid factory insurance:

Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000

Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

f. Applied factory overhead:

Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,500

Packing Department . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,100

g. Production costs transferred from Making Department to Packing Department . $215,800

h. Production costs transferred from Packing Department to Finished Goods . . $351,200

i. Cost of goods sold during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $354,800

Instructions

1. Journalize the entries to record the operations, identifying each entry by letter.

2. Compute the December 31 balances of the inventory accounts.

3. Compute the December 31 balances of the factory overhead accounts.