FloorMate Carpet Company_Process Costing
FloorMate 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 October 1, FloorMate
Carpet Company had the following inventories:
Finished
Goods
$5,600
Work
in Process-Spinning Department
1,500
Work
in Process-Tufting Department
2,300
Materials
4,800
Departmental accounts are
maintained for factory overhead, and both have zero balances on October 1.
Manufacturing operations for October are summarized as follows:
Oct.
1
Materials
purchased on account
$
84,900
2
Materials
requisitioned for use:
Fiber—Spinning
Department
$
43,600
Carpet
backing—Tufting Department
34,100
Indirect
materials—Spinning Department
3,200
Indirect
materials—Tufting Department
2,900
31
Labor
used:
Direct
labor—Spinning Department
$
26,300
Direct
labor—Tufting Department
17,900
Indirect
labor—Spinning Department
12,100
Indirect
labor—Tufting Department
11,700
31
Depreciation
charged on fixed assets:
Spinning
Department
$
5,300
Tufting
Department
3,400
31
Expired
prepaid factory insurance:
Spinning
Department
$
1,200
Tufting
Department
1,000
31
Applied
factory overhead:
Spinning
Department
$
22,000
Tufting
Department
18,700
31
Production
costs transferred from Spinning Department to Tufting Department
$
88,000
31
Production
costs transferred from Tufting Department to Finished Goods
$159,000
31
Cost
of goods sold during the period
$160,500
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 October 31 balances of the inventory accounts.
3.
Compute the October 31 balances of
the factory overhead accounts.
2. Compute the October 31 balances
of the inventory accounts.
Materials
selector 1Credit
Debit
Credit
Work in Process
-Spinning Department
selector 2Credit
Debit
Credit
-Tufting Department
selector 3Credit
Debit
Credit
Finished Goods
selector 4Credit
Debit
Credit
Points:
Feedback
Check My Work
Explanation
3. Compute the October 31 balances
of the factory overhead accounts.
Factory Overhead
-Spinning Department
selector 1Debit
Debit
Credit
-Tufting Department
selector 2Credit
Debit
Credit
