Entries for process cost system cincinnati soap company manufactures

Entries for Process Cost System

Cincinnati 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 the packaging is added at the beginning of the process. On July 1, Cincinnati Soap Company had the following inventories:

Finished Goods $13,650
Work in Process—Making 5,310
Work in Process—Packing 6,920
Materials 3,000

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

Manufacturing operations for July are summarized as follows:

a. Materials purchased on account $170,050
b. Materials requisitioned for use  
    Phosphate—Making Department $112,330
    Packaging—Packing Department 39,070
    Indirect materials—Making Department 4,400
    Indirect materials—Packing Department 1,580
c. Labor used  
    Direct labor—Making Department $80,250
    Direct labor—Packing Department 54,170
    Indirect labor—Making Department 15,540
    Indirect labor—Packing Department 27,860
d. Depreciation charged on fixed assets  
    Making Department $14,650
    Packing Department 12,100
e. Expired prepaid factory insurance  
    Making Department $2,780
    Packing Department 1,110
f. Applied factory overhead  
    Making Department $38,300
    Packing Department 42,310
g. Production costs transferred from Making Department to Packing Department $231,550
h. Production costs transferred from Packing Department to Finished Goods $364,410
i. Cost of goods sold during the period $365,750


1.  Journalize the entries to record the operations, identifying each entry by letter. For a compound transaction, if an amount box does not require an entry, leave it blank.

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