Design Flooring 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 July 1, Design Flooring Carpet Company had the following inventories:

Finished Goods...........................................$5,600 Work in Process

- Spinning Department .....900 Work in Process

- Tufting Department ......1,400

Materials...........................................................4,200

-Departmental accounts are maintained for factory overhead, and both have zero balances on July 1. Manufacturing operations for July are summarized as follows:

a. Materials purchased on account $$ 84,600

b. Materials requisitioned for use: Fiber"Spinning Department $ 42,800 Carpet backing"Tufting Department 34,400 Indirect materials"Spinning Department 3,200 Indirect materials"Tufting Department 2,800

c. Labor used: Direct labor"Spinning Department $ 24,200 Direct labor"Tufting Department 18,700 Indirect labor"Spinning Department 12,300 Indirect labor"Tufting Department 11,900

d. Depreciation charged on fixed assets: Spinning Department $ 5,300 Tufting Department 3,100

e. Expired prepaid factory insurance: Spinning Department $ 1,200 Tufting Department 900

f. Applied factory overhead: Spinning Department $ 21,600 Tufting Department 19,500

g. Production costs transferred from Spinning Department to Tufting Department $ 87,200

h. Production costs transferred from Tufting Department to Finished Goods $159,200

i. Cost of goods sold during the period $160,300

Instructions: Journalize the entries to record the operations, identifying each entry by letter. Compute the July 31 balances of the inventory accounts. Compute the July 31 balances of the factory overhead accounts.