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................................................

Chapter 18, Problem Set A #1

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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:


Homepride Carpet Company manufactures carpets. Fiber is placed in process


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.

Related Book For answer-question

Financial and Managerial Accounting

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

ISBN: 978-1285078571