Question

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: Beginning Inventory $ 164,000 315, 000 720, 000 1,476, 000 Ending Inventory $ 249, e00 445, 000 805, 000 1,446, 000 Raw naterials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory The following additional information describes the company's manufacturing activities for June: $520, 000 3, 230, 000 210,000 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) $ 304, 000 75, 000 142, 000 $1, 250, 009 410, 000 1,550, 000 85% 150% $5, 450, 800 1. Compute the (a) cost of products transferred from weaving to sewing. (b) cost of products transferred from sewing to finishe and (c) cost of goods sold. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing. (b) goods transferred from sa finished goods, (c) sale of finished goods, and (d) cost of goods sold.

Answer 1

				Weaving	Sewing
	Beginning wip			315,000	720,000
	transferred to sewing				2,486,500
	Cost added during the year
	Direct materiald			304,000	75,000
	direct labor			1,250,000	410,000
	overhead applied			1062500	615000
	total cost added			2,616,500	1,100,000
	total cost .			2,931,500	4,306,500
	less ending inventory			445,000	805,000
	cost completed			2,486,500	3,501,500
	cost of goods sold
	beginning finished goods inventory				1,476,000
	Add cost from sewing				3,501,500
	total goods Available				4,977,500
	Ending finished goods inventory				1,446,000
	cost of goods sold				3,531,500
1)	a)Cost of products transferred from weaving to sewing						2,486,500
	b)cost of products transferred from sewing to finished-						3,501,500
	c)cost of goods sold -						3,531,500
2)	Journal entries
	Accounting titles & explanations					Debit	Credit
1)	Work in process -sewing					2,486,500
	work in process-weaving						2,486,500
2)	Finished goods inventory					3,501,500
	work in process -sewing						3,501,500
3)	Accounts receivable					4,350,000
	Sales						4,350,000
4)	Cost of goods sold					3,531,500
	finished goods inventory						3,531,500
	Journal Entries
	Accounting titles & explanations					Debit	Credit
a)	Raw materials inventory					520,000
	Accounts payable						520,000
b)	Work in process inventory-weaving					304,000
	Work in process inventory-sewing					75,000
	Raw materials inventory						379,000
c)	Factory overhead					142,000
	Raw materials inventory						142,000
d)	Work in process inventory-weaving					1,250,000
	Work in process inventory-sewing					410,000
	Factory wages payable						1,660,000
e)	Factory overhead					1,550,000
	Factory wages payable						1,550,000
f)	Factory overhead					210,000
	Accounts payable						210,000
g)	Work in process inventory-weaving					1062500
	Work in process inventory-sewing					615000
	Factory overhead						1677500
h)	Factory wages payable					3,230,000
	cash						3,230,000