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 Ending Inventory Inventory Raw materials inventory $ 198,800 $ 221,000 Work in process 340,000 415,000 inventory-Weaving Work in process inventory-Sewing 600,000 750, eee Finished goods inventory 1,296,880 1,496,000 The following additional information describes the company's manufacturing activities for June: $ 568,888 3,660,000 212,080 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) $ 250,000 81,000 150,000 $1,325,000 585,000 1,750,000 90 1554 $5,250,000 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. Complete this question by entering your answers in the tabs below. 1 Required Required 2 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. (a) Sewing (b) Finished Goods Cost of goods (c) sold Required Required 2 >

Answer 1

Requirement (1) Debit Credt $ 2,692,500 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 2,692,500 $ $ $ $ $ $ 340,000 250,000 1,325,000 1,192,500 (415,000) 2,692,500 $ 4,115,250 30-Jun Finished Goods Inventory Work-in Process Inventory - Sewing (To record the transfer of costs from sewing to finished goods) 4,115,250 Requirement (1) $ 5,250,000 30-Jun Accounts Receivable Sales Revenue (To Record Sales) 5,250,000 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 $ $ $ S $ $ $ 600,000 2,692,500 81,000 585,000 906,750 (750,000) 4,115,250 $ 3,915,250 30-Jun Cost of Goods Sold Finished Goods Inventory (To record the cost of goods sold) 3,915,250 Requirement (10) Cost of products transferred from Sewing to Finished Goods Add: Finished goods inventory Less: Finished goods inventory Cost of Goods Sold $ S $ $ 4,115,250 1,296,000 (1,496,000) 3.915,250 Note : Comment down for any issues