Question

Required information Use the following information for the Exercises below. The following information applies to the questions displayed below.] 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 inventories: Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Beginning Inventory $ 178, eee 470,eee 745, eee 1,356,eee Ending Inventory $ 241, eee 520, eee 9 2e, eee 1,446, eee The following additional information describes the company's manufacturing activities for June $ 540,000 3,675, eee 192,000 $ 308,000 123, eee 142,000 Raw materials purchases (on credit) Factory wages 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) $1,350, eee 575,000 1,750, eee 85% 155% $4,650, eee

Answer 1

1.

a. Cost of product transferred from weaving to sewing:

	Weaving
Direct material used	$308,000
Direct labor used	1,350,000
Applied overhead (1,350,000*85%)	1,147,500
Total manufacturing cost	2,805,500
Add: Beginning work in process	470,000
Less: Ending work in process	(520,000)
Cost of product transferred from weaving to sewing	$2,755,500

b. Cost of product transferred from sewing to finished goods

	Sewing department
Cost of product transferred from weaving	$2,755,500
Direct material used	123,000
Direct labor used	575,000
Applied overhead (575,000*155%)	891,250
Total manufacturing cost	4,344,750
Add: Beginning work in process	745,000
Less: Ending work in process	(920,000)
Cost of product transferred from sewing to finished goods	$4,169,750

c. Cost of goods sold:

	Finished goods
Transferred from sewing	$4,169,750
Beginning finished goods	1,356,000
Ending finished goods	(1,446,000)
Cost of goods sold	$4,079,750

2.

Date	General Journal	Debit	Credit
June 30	Work in process inventory-Sewing	$2,755,500
	Work in process inventory-Weaving		$2,755,500
June 30	Finished goods inventory	$4,169,750
	Work in process inventory-Sewing		$4,169,750
June 30	Accounts receivable	$4,650,000
	Sales		$4,650,000
	Cost of goods sold	$4,079,750
	Finished goods inventory		$4,079,750