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 $15,620

Work in Process-Making 6,070

Work in Process-Packing 7,910

Materials 3,430

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 $194,560

b. Materials requisitioned for use:

Phosphate-Making Department $128,520

Packaging-Packing Department 44,700

Indirect materials-Making Department 5,030

Indirect materials-Packing Department 1,800

c. Labor used:

Direct labor-Making Department $91,820

Direct labor-Packing Department 61,980

Indirect labor-Making Department 17,780

Indirect labor-Packing Department 31,880

d. Depreciation charged on fixed assets:

Making Department $16,760

Packing Department 13,840

e. Expired prepaid factory insurance:

Making Department $3,180

Packing Department 1,270

f. Applied factory overhead:

Making Department $43,820

Packing Department 48,410

g. Production costs transferred from Making Department to Packing Department $264,920

h. Production costs transferred from Packing Department to Finished Goods $416,940

i. Cost of goods sold during the period $418,470

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 or enter “0”.

Item Account Debit Credit










2. Compute the July 31 balances of the inventory accounts.

Materials: $

Work in Process-Making Department: $

Work in Process-Packing Department: $

Finished Goods: $

3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance.

Factory Overhead-Making Department: $

Factory Overhead-Packing Department: $