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: Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Beginning Inventory $ 198,000 315,000 705,000 1,486,000 Ending Inventory $ 197,000 350,000 920,000 1,266,000 The following additional information describes the company's manufacturing activities for June: $ 645,000 3,320,000 182,000 $ 242,000 132,000 182,000 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) $1,375,000 435,000 1,800,000 85% 155% $5,650,000 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

Credit Transaction (a) General Journal Debit Raw materials inventory S645,000 Accounts payable (To record raw materials purchases on account) $645,000 $242.000 $132.000 Work in process inventory-Weaving Work in process inventory-Sewing Raw materials inventory (To record direct materials usage) $374.000 $182.000 Factory overhead Raw materials inventory (To record indirect materials usage) $182.000 Work in process inventory-Weaving $1,375,000 Work in process inventory-Sewing $435,000 Factory payroll payable $1.810,000 (To record direct labor usage) $1.800.000 Factory overhead Factory payroll payable (To record indirect labor usage) $1.800.000 $182.000 Factory overhead Other accounts (To record other overhead costs) $182.000 Work in process inventory-Weaving $1,168,750 Work in process inventory-Sewing $674,250 Factory overhead $1.843.000 (h) Factory payroll payable $3,320,000 Cash (To record payment of total payroll costs) $3,320,000