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Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January $1,$ Port Ormond Carpet Company had the following inventories:

Finished Goods $$7,200$

Work in Process$-$Spinning Department $1,000$

Work in Process$-$Tufting Department $2,400$

Materials $4,300$

Departmental accounts are maintained for factory overhead, and both have zero balances on January $1.$

Manufacturing operations for January are summarized as follows:

Jan. $1$ Materials purchased on account, $$80,000$

$2$ Materials requisitioned for use:

Fiber$-$Spinning Department, $$42,000$

Carpet backing$-$Tufting Department, $$34,600$

Indirect materials$-$Spinning Department, $$3,000$

Indirect materials$-$Tufting Department, $$2,900$

$31$ Labor used:

Direct labor$-$Spinning Department, $$26,900$

Direct labor$-$Tufting Department, $$17,800$

Indirect labor$-$Spinning Department, $$11,700$

Indirect labor$-$Tufting Department, $$11,800$

$31$ Depreciation charged on fixed assets:

Spinning Department, $$5,300$

Tufting Department, $$3,500$

$31$ Expired prepaid factory insurance:

Spinning Department, $$1,300$

Tufting Department, $$1,000$

$31$ Applied factory overhead:

Spinning Department, $$21,500$

Tufting Department, $$18,850$

$31$ Production costs transferred from Spinning Department to Tufting Department, $$85,000$

$31$ Production costs transferred from Tufting Department to Finished Goods, $$152,600$

$31$ Cost of goods sold during the period, $$155,300$

Required:

$1.$ Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations.

$2.$ Compute the January $31$ balances of the inventory accounts.

$3.$ Compute the January $31$ balances of the factory overhead accounts.

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