Port Ormond 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 January 1, Port Ormond Carpet Company had the following inventories: Finished Goods $8,200 Work in Process-Spinning Department 1,800 Work in Process-Tufting Department 2,900 Materials 4,800 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, $82,700 2 Materials requisitioned for use: Fiber-Spinning Department, $43,800 Carpet backing-Tufting Department, $34,900 Indirect materials-Spinning Department, $3,200 Indirect materials-Tufting Department, $2,800 31 Labor used: Direct labor-Spinning Department, $27,000 Direct labor-Tufting Department, $17,400 Indirect labor-Spinning Department, $11,600 Indirect labor-Tufting Department, $11,700 31 Depreciation charged on fixed assets: Spinning Department, $5,200 Tufting Department, $3,100 31 Expired prepaid factory insurance: Spinning Department, $1,500 Tufting Department, $1000 31 Applied factory overhead: Spinning Department, $21,850 Tufting Department, $18,350 31 Production costs transferred from Spinning Department to Tufting Department, $86,000 31 Production costs transferred from Tufting Department to Finished Goods, $152,800 31 Cost of goods sold during the period, $157,900 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. Compute the January 31 balances of the inventory accounts.* 3. Compute the January 31 balances of the factory overhead accounts.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Port Ormond 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 January 1, Port Ormond Carpet Company had the following inventories:
| Finished Goods | $8,200 |
| Work in Process-Spinning Department | 1,800 |
| Work in Process-Tufting Department | 2,900 |
| Materials | 4,800 |
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, $82,700 |
| 2 | Materials requisitioned for use: | |
| Fiber-Spinning Department, $43,800 | ||
| Carpet backing-Tufting Department, $34,900 | ||
| Indirect materials-Spinning Department, $3,200 | ||
| Indirect materials-Tufting Department, $2,800 | ||
| 31 | Labor used: | |
| Direct labor-Spinning Department, $27,000 | ||
| Direct labor-Tufting Department, $17,400 | ||
| Indirect labor-Spinning Department, $11,600 | ||
| Indirect labor-Tufting Department, $11,700 | ||
| 31 | Depreciation charged on fixed assets: | |
| Spinning Department, $5,200 | ||
| Tufting Department, $3,100 | ||
| 31 | Expired prepaid factory insurance: | |
| Spinning Department, $1,500 | ||
| Tufting Department, $1000 | ||
| 31 | Applied factory overhead: | |
| Spinning Department, $21,850 | ||
| Tufting Department, $18,350 | ||
| 31 | Production costs transferred from Spinning Department to Tufting Department, $86,000 | |
| 31 | Production costs transferred from Tufting Department to Finished Goods, $152,800 | |
| 31 | Cost of goods sold during the period, $157,900 |
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| 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between |
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| 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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*Enter your amounts in positive value. 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 the exact wording of the account titles. CNOW journals do not use lines for spaces or journal explanations. Every line on a journal page is used for debit or credit entries. Do not add explanations or skip a line between journal entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION
2. Compute the January 31 balances of the inventory accounts. Enter your amounts in positive value.
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