g p soap company manufactures powdered detergent phosphate is placed in process in t 647629

G&P 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 December 1, G&P Soap Company had the following inventories:

Finished Goods

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Work in Process—Making


Work in Process—Packing




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

Manufacturing operations for December are summarized as follows:


Materials purchased on account



Materials requisitioned for use:



Phosphate—Making Department



Packaging—Packing Department



Indirect materials—Making Department



Indirect materials—Packing Department



Labor used:



Direct labor—Making Department

$ 79,400


Direct labor—Packing Department



Indirect labor—Making Department



Indirect labor—Packing Department



Depreciation charged on fixed assets:



Making Department



Packing Department



Expired prepaid factory insurance:



Making Department



Packing Department



Applied factory overhead:



Making Department



Packing Department



Production costs transferred from Making Department to Packing Department



Production costs transferred from Packing Department to Finished Goods



Cost of goods sold during the period



1. Journalize the entries to record the operations, identifying each entry by letter.

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

3. Compute the December 31 balances of the factory overhead accounts.

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