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: Beginning Inventory 154,200 420, eee Ending Inventory $ 225,000 445,000 Raw materials inventory Work in process inventory- Weaving Work in process inventory- Sewing Finished goods inventory 645,000 1,416,000 875,000 1,486,000 The following additional information describes the company's manufacturing activities for June: $ 605,000 3,425,000 170,000 $ 314,000 129,000 200,000 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) $1,225,000 425,000 1,775,000 85% 150% $5,100,000

Answer 1

Answers:

Required 1:

(a). Sewing : 2,555,250

(b). Finished good: 3,516,750

(c). Cost of goods sold : 3,446,750

Calculation:

1a.

Cost of Goods Manufactured in Weaving Department
Materials used	314,000
Direct labor	1,225,000
Manufacturing overhead	1,041,250	(1,225,000x 85%)
Total manufacturing costs	2,580,250
Add Beginning Work in Process	420,000
Subtotal	3,000,250
less Ending Work in Process	445,000
Cost of Goods manufactured	2,555,250

Cost of goods transferred from weaving to sewing = $2,555,250

1b.

Cost of Goods Manufactured in Sewing Department
Materials used	129,000
Direct labor	425,000
Manufacturing overhead	637,500	(425,000 x 150%)
Cost of goods transferred from Weaving Department	2,555,250
Total manufacturing costs	3,746,750
Add Beginning Work in Process	645,000
Subtotal	4,391,750
Less Ending Work in Process	875,000
Cost of Goods manufactured	3,516,750

Cost of goods transferred from sewing to finished goods = $3,516,750

1c.

Cost of Goods manufactured	3,516,750
Add Beginning Finished Goods inventory	1,416,000
Goods Available for Sale	4,932,750
Less Ending Finished Goods inventory	1,486,000
Cost of Goods Sold	3,446,750

Answers:

Required 2:

(a). goods transferred from weaving to sewing.

No	Date	General Journal	Debit	Credit
1	Jun-30	Work in Process - Sewing	2,555,250
		Work in Process - Weaving		2,555,250
(b). goods transferred from sewing to finished goods.
2	Jun-30	Finished Goods	3,516,750
		Work in Process - Sewing		3,516,750
(c). Sale of goods on account
3	Jun-30	Accounts Receivable	$5,100,000
		Sales Revenue		$5,100,000
(d).  sale of finished goods.
4	Jun-30	Cost of Goods Sold	3,446,750
		Finished Goods		3,446,750

Answers:

	General Journal	Debit	Credit
(a) raw materials purchases
(a)	Raw materials inventory	605,000
	Accounts payable		605,000
(b) direct materials usage
(b)	Work in process inventory—Sewing	129,000
	Work in process inventory—Weaving	314,000
	Raw materials inventory		443,000
(c) indirect materials usage
(c)	Factory overhead	200,000
	Raw materials inventory		200,000
(d) direct labor incurred, but not paid
(d)	Work in process inventory—Sewing	425,000
	Work in process inventory—Weaving	1,225,000
	Factory payroll payable		1,650,000
(e) indirect labor incurred, but not paid
(e)	Factory overhead	1,775,000
	Factory payroll payable		1,775,000
(f) other overhead costs
(f)	Factory overhead	170,000
	Other accounts		170,000
(g) overhead applied
(g)	Work in process inventory—Sewing	637,500
	Work in process inventory—Weaving	1,041,250
	Factory overhead		1,678,750
(h) payment of total factory payroll
(h)	Factory payroll payable	3,425,000
	Cash		3,425,000