PR 20-1B Entries for process cost system 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 OBJ. 1, 3 Finished Goods Work in Process-Making Work in Process-Packing Materials $13,500 6,790 7,350 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 b. Materials requisitioned for use: 31,300 4,980 1,530 c. Labor used 40,900 15,400 18,300 d. Depreciation charged on fixed assets: 10,700 7,900 Packing e. Expired prepaid factory insurance: 2,000 1,500 Making Department. f. Applied factory overhead: 32,570 30,050 g. Production costs transferred from Making Department to Packing Department..$166,790 h. Production costs transferred from Packing Department to Finished Goods... . . . . . . .$263,400 i. Cost of goods sold during the period....... .. . .. .. .. .....$265,200 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