Question

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 Inventory $ 124,900 405,000 Ending Inventory $ 257,000 335,000 Raw materials inventory Work in process inventory- Weaving Work in process inventory- Sewing Finished goods inventory 720,000 1,276,000 810,000 1,346,000 The following additional information describes the company's manufacturing activities for June: $ 595,000 3, 340,000 168,000 $ 262,000 117,000 162,000 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) $1,325,000 585,000 1,625,000 80% 170% $5,350,000

Answer 1

				Weaving	Sewing
	Beginning wip			405,000	720,000
	transferred to sewing				2,717,000
	Cost added during the year
	Direct materiald			262,000	117,000
	direct labor			1,325,000	585,000
	overhead applied			1060000	994500
	total cost added			2,647,000	1,696,500
	total cost .			3,052,000	5,133,500
	less ending inventory			335,000	810,000
	cost completed			2,717,000	4,323,500
	cost of goods sold
	beginning finished goods inventory				1,276,000
	Add cost from sewing				4,323,500
	total goods Available				5,599,500
	Ending finished goods inventory				1,346,000
	cost of goods sold				4,253,500
1)	a)Cost of products transferred from weaving to sewing						2,717,000
	b)cost of products transferred from sewing to finished-						4,323,500
	c)cost of goods sold -						4,253,500
2)	Journal entries
	Accounting titles & explanations					Debit	Credit
1)	Work in process -sewing					2,717,000
	work in process-weaving						2,717,000
2)	Finished goods inventory					4,323,500
	work in process -sewing						4,323,500
3)	Accounts receivable					5,350,000
	Sales						5,350,000
4)	Cost of goods sold					4,253,500
	finished goods inventory						4,253,500