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:

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

Manufacturing operations for July are summarized as follows:

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".

2. compute the July 31 balances of the inventory accounts

3. compute the July 31 balances of the factory overhead accounts