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:

Jul.	1	Materials purchased on account, $149,800
	2	Materials requisitioned for use:
		Phosphate—Making Department, $105,700
		Packaging—Packing Department, $31,300
		Indirect materials—Making Department, $4,980
		Indirect materials—Packing Department, $1,530
	31	Labor used:
		Direct labor—Making Department, $32,400
		Direct labor—Packing Department, $40,900
		Indirect labor—Making Department, $15,400
		Indirect labor—Packing Department, $18,300
	31	Depreciation charged on fixed assets:
		Making Department, $10,700
		Packing Department, $7,900
	31	Expired prepaid factory insurance:
		Making Department, $2,000
		Packing Department, $1,500
	31	Applied factory overhead:
		Making Department, $32,570
		Packing Department, $30,050
	31	Production costs transferred from Making Department to Packing Department, $166,790
	31	Production costs transferred from Packing Department to Finished Goods, $263,400
	31	Cost of goods sold during the period, $265,200

Required:

1.

Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations. Refer to the Chart of Accounts for exact wording of account titles.

2.

Compute the July 31 balances of the inventory accounts.

3.

Compute the July 31 balances of the factory overhead accounts.
CHART OF ACCOUNTSPreston & Grover Soap CompanyGeneral Ledger

	ASSETS
110	Cash
121	Accounts Receivable
125	Notes Receivable
126	Interest Receivable
131	Materials
141	Work in Process-Making Department
142	Work in Process-Packing Department
151	Factory Overhead-Making Department
152	Factory Overhead-Packing Department
161	Finished Goods
171	Supplies
172	Prepaid Insurance
173	Prepaid Expenses
181	Land
191	Factory
192	Accumulated Depreciation-Factory

	LIABILITIES
210	Accounts Payable
221	Utilities Payable
231	Notes Payable
236	Interest Payable
251	Wages Payable

	EQUITY
311	Common Stock
340	Retained Earnings
351	Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
520	Wages Expense
531	Selling Expenses
532	Insurance Expense
533	Utilities Expense
534	Supplies Expense
540	Administrative Expenses
561	Depreciation Expense-Factory
590	Miscellaneous Expense
710	Interest Expense