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: Ending Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Beginning Inventory $ 192,000 300,000 700,000 1,456,000 Inventory $ 229,000 465,000 910,000 1,216,000 The following additional information describes the company's manufacturing activities for June $ 560.000 3,260,000 212,000 $ 266,000 81,000 154,000 Raw materials purchases (on credit) Factory payroll cost (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 Soles (on credit) $1,325,000 565,000 1,650,000 80s 1655 $4,850,000

Answer 1

Answer - Part - (1)

(a) -- Cost of products transferred from Weaving to Sewing -

	Particulars	Explanation	Amount ($)
I.	Inventory at the beginning	Given in question	300000
II.	Material (direct)	Given in question	266000
III.	Labor (direct)	Given in question	1325000
IV.	Overhead applied	$1325000 * 80%	1060000
V.	Total cost weaving	I + II + III + IV	2951000
VI.	Inventory at the end	Given in question	465000
Transferred to Sewing		V - VI	2486000

.

(b) -- Cost of products transferred from Sewing to Finished goods -

	Particulars	Explanation	Amount ($)
I.	Inventory at the beginning	Given in question	700000
II.	Material (direct)	Given in question	81000
III.	Labor (direct)	Given in question	565000
IV.	Overhead applied	$565000 * 165%	932250
V.	Transferred from Weaving	Calculated in - (a)	2486000
VI.	Total cost Sewing	I + II + III + IV + V	4764250
VII.	Inventory at the end	Given in question	910000
Transferred to Finished goods		VI - VII	3854250

.

(c) -- Cost of goods sold -

	Particulars	Explanation	Amount ($)
I.	Inventory at the beginning	Given in question	1456000
II.	Transferred from Sewing	Calculated in - (b)	3854250
III.	Finished goods at the end	Given in question	1216000
Cost of goods sold		I + II - III	4094250

.

Answer - Part - (2)

No.	Date	General journal	Debit ($)	Credit ($)
(a)	June 30	Work in process inventory--Sewing Work in process inventory--Weaving	2486000 -	- 2486000
(b)	June 30	Finished goods inventory Work in process inventory--Sewing	3854250 -	- 3854250
(c)	June 30	Accounts receivable Sales	4850000 -	- 4850000
(d)	June 30	Cost of goods sold Finished goods inventory	4094250 -	- 4094250