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 $ 152,000 420,000 570,000 1,396,000 Ending Inventory $ 261,000 495,000 760,000 1,326,000 The following additional information describes the company's manufacturing activities for June: $ 660,000 3,475,000 170,000 $ 266,000 90,000 158,000 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) $1,325,000 550,000 1,600,000 858 1658 $5,200,000

Answer 1

Solution 1:

Pro-Weave Manufacturer
Cost of products transferred from weaving to sewing
Particulars	Amount
Raw material used in Weaving	$2,66,000.00
Direct Labor - Weaving	$13,25,000.00
Manufacturing overhead Applied - Weaving (85% of DL)	$11,26,250.00
Cost Incurred during the period in production	$27,17,250.00
Add: Opening WIP	$4,20,000.00
Less: ending WIP	$4,95,000.00
Cost of goods transferred from Weaving to Sewing	$26,42,250.00
Pro-Weave Manufacturer
Cost of products transferred from Sewing to Finished Goods
Particulars	Amount
Cost of goods transferred from Weaving	$26,42,250.00
Raw material used in Sewing	$90,000.00
Direct Labor - Weaving	$5,50,000.00
Manufacturing overhead Applied - Weaving (165% of DL)	$9,07,500.00
Cost Incurred during the period in production	$41,89,750.00
Add: Opening WIP	$5,70,000.00
Less: ending WIP	$7,60,000.00
Cost of goods manufactured and transferred to finished goods	$39,99,750.00

Pro-Weave Manufacturer
Schedule of cost of goods Sold
Particulars	Amount
Beginning finished goods inventory	$13,96,000.00
Add: Cost of goods manufactured	$39,99,750.00
Less: ending finished goods inventory	$13,26,000.00
Cost of goods sold	$40,69,750.00

Solution 2:

Journal Entries - Pro-Weave Manufacturer
Event	Particulars	Debit	Credit
a	Work in Process - Sewing Department Dr	$26,42,250.00
	To Work in process - Weaving Department		$26,42,250.00
	(To cost of completed units in weaving transferred to Sewing department)
b	Finished Goods Inventory Dr	$39,99,750.00
	To Work in process - Sewing Department		$39,99,750.00
	(To cost of completed units in sewing transferred to finished goods)
c-1	Accounts receivables Dr	$52,00,000.00
	To Sales Revenue		$52,00,000.00
	(To record sale finished goods)
c-2	Cost of goods sold Dr	$40,69,750.00
	To Finished goods inventory		$40,69,750.00
	(Being cost of inventory sold transferred to COGS)