Question

i cannot get this one !

Check my work Required information (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 $ 120,000 300,000 570,000 1,266,000 Ending Inventory $ 185,000 330,000 700,000 1,206,000 The following additional information describes the company's manufacturing activities for June: $ 500,000 3,060,000 156,000 $ 240,000 75,000 120,000 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) $1,200,000 360,000 1,500,000 808 150% $4,000,000

Answer 1

Solution 1:

Pro-Weave Manufacturer
Cost of products transferred from weaving to sewing
Particulars	Amount
Raw material used in Weaving	$2,40,000.00
Direct Labor - Weaving	$12,00,000.00
Manufacturing overhead Applied - Weaving (80% of DL)	$9,60,000.00
Cost Incurred during the period in production	$24,00,000.00
Add: Opening WIP	$3,00,000.00
Less: ending WIP	$3,30,000.00
Cost of goods transferred from Weaving to Sewing	$23,70,000.00

Pro-Weave Manufacturer
Cost of products transferred from Sewing to Finished Goods
Particulars	Amount
Cost of goods transferred from Weaving	$23,70,000.00
Raw material used in Sewing	$75,000.00
Direct Labor - Weaving	$3,60,000.00
Manufacturing overhead Applied - Weaving (150% of DL)	$5,40,000.00
Cost Incurred during the period in production	$33,45,000.00
Add: Opening WIP	$5,70,000.00
Less: ending WIP	$7,00,000.00
Cost of goods manufactured and transferred to finished goods	$32,15,000.00

Pro-Weave Manufacturer
Schedule of cost of goods Sold
Particulars	Amount
Beginning finished goods inventory	$12,66,000.00
Add: Cost of goods manufactured	$32,15,000.00
Less: ending finished goods inventory	$12,06,000.00
Cost of goods sold	$32,75,000.00

Solution 2:

Journal Entries - Pro-Weave Manufacturer
Event	Particulars	Debit	Credit
a	Work in Process - Sewing Department Dr	$23,70,000.00
	To Work in process - Weaving Department		$23,70,000.00
	(To cost of completed units in weaving transferred to Sewing department)
b	Finished Goods Inventory Dr	$32,15,000.00
	To Work in process - Sewing Department		$32,15,000.00
	(To cost of completed units in sewing transferred to finished goods)
c-1	Accounts receivables Dr	$40,00,000.00
	To Sales Revenue		$40,00,000.00
	(To record sale finished goods)
c-2	Cost of goods sold Dr	$32,75,000.00
	To Finished goods inventory		$32,75,000.00
	(Being cost of inventory sold transferred to COGS)