Question

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Exercise 3-14 Production cost flow and measurement; journal entries LO P1, P2, P3, P4 Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventores Raw materials inventory Work in process inventory Weaving Work in process inventory Sewing Finished goods inventory Beginning Inventory $ 182,000 370.000 585,000 1,406,000 Ending Inventory $ 285,000 450 000 760,000 1,496,000 The following additional information describes the company's manufacturing activities for June. $ 580,000 3,210,000 178,000 Raw materials purchases (on credit) Factory payroll cost (paid in cash) Other factory overhead cost (Other Accounts credited) Materials used Direct-Weaving Direct-Sewing Indirect Labor used Direct-Weaving Direct-Sewing Indirect Overhead rates as a percent of direct labor Weaving Sewing Sales (on credit) $ 252,000 96,000 194 000 $1,350,000 415,000 1,625,000 80% 155% $4,650,000

Answer 1

Answer-1:

$ (a) From Weaving to Sewing (b) From Sewing to Finished Goods (c) Cost of goods sold 2,602,000 3,581,250 3,491,250

Explanation:

$ $2,602,000 Beg. RM RM-Purchase Raw Material (RM) 182,000 WIP-Weaving 580,000 WIP-Sewing Factory overhead 762,000 285,000 $ 252,000 96,000 194,000 762,000 Ending RM 3,052,000 Work In Process (WIP) - Weaving Beg. WIP $ 370,000 WIP-Sewing Direct material-weaving 252,000 Direct labor-Weaving 1,350,000 Factory overhead 1,080,000 3,052,000 Ending WIP 450,000 Factory Wages Payable Cash $3,210,000 Direct labor-Weaving Direct labor-Sewing Indirect labor 3,390,000 Ending Bal. $3,581,250 $1,350,000 415,000 1,625,000 3,390,000 180,000 4,341,250 Work In Process (WIP) - Sewing Beg. WIP $ 585,000 FG Direct material-Sewing 96,000 Direct labor-Sewing 415,000 WIP-Weaving 2,602,000 Factory overhead 643,250 4,341,250 Ending WIP 760,000 Factory Overhead Indirect RM used $ 194,000 WIP-Weaving Indirect labor used 1,625,000 WIP-Sewing Other overhead costs 178,000 $ 1,997,000 Underapplied overhead 273,750 $3,491,250 $ 1,080,000 643,250 Beg. FG WIP-Sewing Finished Goods (FG) $1,406,000 Cost of goods sold 3,581,250 4,987,250 1,496,000 4,987,250 1,997,000 Ending FG

Answer-2:

Credit No. Date General Journal 9 May 31. WIP-Sewing WIP-Weaving Debit 2,602,000 2,602,000 3,581,250 10 May 31. FG inventory WIP-Sewing 3,581,250 4,650,000 11 May 31. Account receivable Sales 4,650,000 3,491,250 12 May 31. Cost of goods sold FG inventory 3,491,250