Question

Please answer both parts of the question, as they are both parts of one question.

5 Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Part 1 of 2 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: 1 points Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Beginning Inventory $ 156,000 470,000 650,000 1,296,000 Ending Inventory $ 229,000 535,000 805,000 1,246,000 eBook The following additional information describes the company's manufacturing activities for June: Hint $530,000 3,685,000 168,000 Print $ 264,000 78,000 144,000 References 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) $1,325,000 585,000 1,775,000 85% 1608 $4,050,000 Exercise 20-14 Production cost flow and measurement; journal entries LO P4 1. Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, 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 sewing to finished goods, (c) sale of finished goods, and (d) cost of goods sold.

Answer 1

Requirement (1) Credit Requirement (2) Transaction General Journal (a) Raw Material Accounts Payable Debit $ 530,000 (a) (b) (c.) Sewing $ 2,650,250 Finished Goods $ 4,094,250 Cost of Goods sold $ 2,848,250 $ 530,000 (b) Work in Process inventory - Weaving $ Work in Process inventory - Sewing Raw Material Inventory 264,000 78,000 $ $ 342,000 $ Factory Overhead Raw Material Inventory 144,000 $ 144,000 (d) Working Note Particulars Weaving Dept Sewing Dept Finished Goods Beginning Inventory $ 470,000 $ 650,000 $ 1,296,000 Direct Material $ 264,000 $ 78,000 Direct Labour $ 1,325,000 $ 585,000 Applied Overhead $ 1,126,250 $ 936,000 Net Cost Weaving $ 3,185,250 Less : Ending Inventory $ (535,000) Transferred to Sewing $ 2,650,250 $ 2,650,250 Total Cost Sewing $4,899,250 Less : Ending Inventory $ (805,000) Transferred to Finished Goods $ 4,094,250 $ 4,094,250 Less : Finished goods at End $ (1,246,000) Cost of Goods sold $ 2,848,250 Work in Process inventory - Weaving $ 1,325,000 Work in Process inventory - Sewing $ 585,000 Factory Payroll Payable $ 1,910,000 (e) $ 1,775,000 Factory Overhead Factory Payroll Payable $ 1,775,000 (1) $ 168,000 Factory Overhead Other Accounts $ 168,000 (9) Work in Process inventory - Weaving $ 1,126,250 Work in Process inventory - Sewing 936,000 Factory Overhead $ $ 2,062,250 (h) Factory Payroll Payable Cash $ 3,685,000 $ 3,685,000 Note : Please Comment down for any further Clarifications / Issues.