Question

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 Beginning Inventory 146,000 $ $ Ending Inventory 185,000 375,000 370,000 Raw materials inventory Work in process inventory- Weaving Work in process inventory- Sewing Finished goods inventory 615,000 1,466,000 1,000,000 1,316,000 The following additional information describes the company's manufacturing activities for June Raw materials purchases (on credit) Factory payroll cost (paid in cash) Other factory overhead cost (Other Accounts credited) Materials used Direct-Weaving $ 605,000 3,160,000 166,000 $ 246,000 < Prev 6 of 7 Next >

Answer 1

1)
Weaving Department	Costs
Beginning inventory	$        370,000.00
Direct materials	$        246,000.00
Direct labor	$     1,225,000.00
Overhead: 80% × $1,225,000	$        980,000.00
Total cost of goods in the department	$     2,821,000.00
Less: Ending inventory	$        375,000.00
Cost of goods transferred to Sewing	$     2,446,000.00
Sewing Department	Costs
Beginning inventory	$        615,000.00
Cost of goods transferred from Weaving	$     2,446,000.00
Direct materials	$          84,000.00
Direct labor	$        460,000.00
Overhead: 165% × $460,000	$        759,000.00
Total cost of goods in the department	$     4,364,000.00
Less: Ending inventory	$     1,000,000.00
Cost of goods transferred to finished goods	$     3,364,000.00
Beginning inventory	$     1,466,000.00
Cost of goods transferred from Sewing	$     3,364,000.00
Cost of goods available for sale	$     4,830,000.00
Less: Ending inventory	$     1,316,000.00
Cost of goods sold	$     3,514,000.00
2)
Account Titles & Explanation	Debit	Credit
Work in process inventory—Sewing	$     2,446,000.00
Work in process inventory—Weaving		$        2,446,000.00
To record goods transferred from weaving to sewing
Finished goods inventory	$     3,364,000.00
Work in process inventory—Sewing		$        3,364,000.00
To record goods transferred from sewing to finished goods
Accounts receivable	$     5,200,000.00
Sales		$        5,200,000.00
(To Record sale of finished goods.)
Cost of goods sold	$     3,514,000.00
Finished goods inventory		$        3,514,000.00
(To record cost of good sold)