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Mathematics, 12.04.2021 07:40 lunnar2003
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 $ 182,000 $ 213,000
Work in process inventory—Weaving 430,000 430,000
Work in process inventory—Sewing 715,000 990,000
Finished goods inventory 1,416,000 1,426,000
The following additional information describes the company’s manufacturing activities for June:
Raw materials purchases (on credit) $ 580,000
Factory payroll cost (paid in cash) 3,340,000
Other factory overhead cost (Other Accounts credited) 174,000
Materials used
Direct—Weaving $ 302,000
Direct—Sewing 111,000
Indirect 128,000
Labor used
Direct—Weaving $ 1,275,000
Direct—Sewing 390,000
Indirect 1,675,000
Overhead rates as a percent of direct labor
Weaving 85 %
Sewing 155 %
Sales (on credit) $ 4,050,000
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.
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Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a s...
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