Question

1. Prepare entries dated June 30 to record: (a) raw materials purchases, (b) direct materials usage(c) Indirect materials usage d) direct labor usage, ) labor usageoverhead costs, () overhead applied, and () payment of total payroll costs.

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: Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Beginning Inventory $ 120,000 300,000 570,000 1,266,000 Ending Inventory $ 185,000 330,000 700,000 1, 206,000 The following additional information describes the company's manufacturing activities for June: $ 500,000 3,060,000 156,000 $ 240,000 75,000 120,000 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 Sales (on credit) $1,200,000 360,000 1,500,000 808 1508 $4,000,000

Answer 1

Solution:

Journal Entries - Pro-Weave Manufacturer
Event	Particulars	Debit	Credit
a	Raw materials inventory Dr	$500,000.00
	To Accounts payable		$500,000.00
	(To record purchase of materials on account)
b	Work In Process - Weaving Dr	$240,000.00
	Work In Process - Sewing Dr	$75,000.00
	To Raw materials inventory		$315,000.00
	(To record direct material usage)
c	Manufacturing overhead Dr	$120,000.00
	To Raw materials inventory		$120,000.00
	(To record Indirect material usage)
d	Work In Process - Weaving Dr	$1,200,000.00
	Work In Process - Sewing Dr	$360,000.00
	To Factory wages payable		$1,560,000.00
	(To record direct labor incurred but not paid)
e	Manufacturing overhead Dr	$1,500,000.00
	To Factory wages payable		$1,500,000.00
	(To record Indirect labor incurred but not paid)
f	Manufacturing overhead Dr	$156,000.00
	To Other accounts		$156,000.00
	(To record cost of other overheads)
g	Work In Process - Weaving Dr	$960,000.00
	Work In Process - Sewing Dr	$540,000.00
	To Manufacturing overhead		$1,500,000.00
	(To record application of overhead)
h	Factory wages payable Dr	$3,060,000.00
	To Cash		$3,060,000.00
	(To record payment of factory payroll)