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 overhead accounts.

Transcribed Image Text:

b. Materials requisitioned for use: 38,300 Indirect materials-Spinning Department 3,000 c. Labor used: Direct labor-Tufting Department. ..16,900 d. Depreciation charged on fixed assets: Tufting Depגrtment 3,000 e. Expired prepaid factory insurance: Tufting Department... f. Applied factory overhead g. Production costs transferred from Spinning Department to Tufting Department ..83,000 h. Production costs transferred from Tufting Department to Finished Goods ........$143,700 I. Cost of goods sold during the period........ $146,900