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 Ending Inventory $ 192,000 300, 000 700,000 1,456,000 Inventory $ 229,000 465,000 910,000 1,216, 000 Raw materials 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: 560,000 3,260,000 212,000 Raw materials purchases (on credit) Factory payroll cost (paid in cash) Other factory overhead cost (Other Accounts credited) Materials used 266,000 81,000 154, 000 Direct-Weaving Direct-Sewing Indirect Labor used Direct-Weaving Direct-Sewing Indirect $1,325, 000 565, 000 1,650, 000 Overhead rates as a percent of direct labor WeAvingn

Answer 1

Answer

• Only Journal entry ‘c’ is INCORRECT with respect to ‘amount’.
• The entry ‘c’ is for Indirect material used.
• Indirect material used is recorded by:
  Debiting Factory overhead, and
  Crediting Raw material inventory.
• The question clearly states under “Material used” that ‘Indirect material’ used = $ 154,000
• Hence,
  For Journal entry ‘c’
  Just enter $ 154,000 (in place of incorrect $ 523,000)