Question

Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Beginning Inventory $ 148,000 300,000 635,000 1,456,000 Ending Inventory $ 189,000 355,000 790,000 1,476,000 The following additional information describes the company's manufacturing activities for June: S 620,000 3, 465,000 178,000 $ 280,000 129,000 160,000 Raw materials purchases (on credit) Factory payroll coat (paid in cash) Other factory overhead coat (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) $1,375,000 515,000 1,575,000 858 1658 $ 4,550,000 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) Credt Debt $ 2,768,750 $ Requirement (2) Date Accounts Titles and Explanations 30-Jun Work in Process Inventory - Sewing Work-in Process Inventory - Weaving (To record the transfer of costs from weaving to sewing) Beginning Work-in process inventory - Weaving Add: Direct materials used Add: Direct labor Add: Overheads Less: Ending work-in process inventory - Weaving Cost of products transferred from Weaving to Sewing 2,768,750 $ $ $ $ $ $ 300,000 280,000 1,375,000 1,168,750 (355,000) 2,768, 750 $ 4,107,500 30-Jun Finished Goods Inventory Work-in Process Inventory - Sewing (To record the transfer of costs from sewing to finished goods) 4,107,500 Requirement (1) $ 4,550,000 30-Jun Accounts Receivable Sales Revenue (To Record Sales) 4,550,000 Beginning Work-in process inventory - Sewing Add: Cost of products transferred from Weaving to Sewing Add: Direct materials used Add: Direct labor Add: Overheads Less: Ending work-in process inventory - Sewing Cost of products transferred from Sewing to Finished Goods $ $ $ $ $ $ $ 635,000 2,768,750 129,000 515,000 849,750 (790,000 4,107,500 $ 4,087,500 30-Jun Cost of Goods Sold Finished Goods Inventory (To record the cost of goods sold) 4,087 500 Requirement (10) Cost of products transferred from Sewing to Finished Goods Add: Finished goods inventory Less: Finished goods inventory Cost of Goods Sold $ $ $ $ 4,107,500 1,456,000 (1,476,000) 4,087,500 Note : Comment down for any issues