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.