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 Inventory   Ending Inventory
Raw materials inventory   $   156,000      $   229,000     
Work in process inventory—Weaving      345,000         460,000     
Work in process inventory—Sewing      575,000         785,000     
Finished goods inventory      1,456,000         1,436,000     

The following additional information describes the company’s manufacturing activities for June:

            
Raw materials purchases (on credit)   $   510,000     
Factory payroll cost (paid in cash)      3,440,000     
Other factory overhead cost (Other Accounts credited)      166,000     
Materials used           
Direct—Weaving   $   280,000     
Direct—Sewing      108,000     
Indirect      136,000     
Labor used           
Direct—Weaving   $   1,400,000     
Direct—Sewing      415,000     
Indirect      1,625,000     
Overhead rates as a percent of direct labor           
Weaving      85   %
Sewing      165   %
Sales (on credit)   $   5,200,000     
1. Prepare journal entries dated June 30 to record: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor usage, (e) indirect labor usage, (f) other overhead costs, (g) overhead applied, and (h) payment of total payroll costs.

Answer 1

Solution Transaction General Journal page] Debit Gedit $ $ (a) 510,000 (6) 388,000 Raw materials inventory 510,000 Ausunts payable Work in process inventory-wearing 280,000 Work in process inventay-Seming 108,000 Raw materials inventory 136,000 Raw materials inventory Work in process inventary-lebaring 1400,000 block in process inventary Sensing 415,000 Factory pageall payable 1625.000 (c) Factory overhead 136,000 (d) 1815000 o Factory overhead 1625000 Faitay payaal payable

Page 2 2 Credit Transaction General Journal Debit & (f) 166,000 Factory Quechead Other accounts 166,000 (9 ) Work in process inventory 1140,000 - Weaving ($1400,0008851) telork in praess inventory 684,750 - Sewing ($415000X165%) Factory Querhead Factory payall payable | 3440,000 ( Cash 1874,750 (h) 3440,000