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: Beginning Inventory Ending Inventory Raw materials inventory $ 188,000 $ 193,000 Work in process inventory—Weaving 415,000 405,000 Work in process inventory—Sewing 620,000 960,000 Finished goods inventory 1,416,000 1,236,000 The following additional information describes the company’s manufacturing activities for June: Raw materials purchases (on credit) $ 620,000 Factory wages cost (paid in cash) 3,260,000 Other factory overhead cost (Other Accounts credited) 168,000 Materials used Direct—Weaving $ 308,000 Direct—Sewing 102,000 Indirect 122,000 Labor used Direct—Weaving $ 1,375,000 Direct—Sewing 595,000 Indirect 1,550,000 Overhead rates as a percent of direct labor Weaving 85 % Sewing 165 % Sales (on credit) $ 4,800,000 Exercise 16-14 Production cost flow and measurement; journal entries LO P1, P2, P3, P4 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, and (c) sale of finished goods. 3. 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 wages costs. **please show all parts**

Answer 1

Important Note: The data provided for raw materials inventory account does tally.

Beginning balance $188000 + Purchases $620000 - Direct material issued $410000 - Indirect material issued $122000 = Ending balance $276000. However, the ending balance given in the question is $193000. Kindly re-check.

1(a) Cost of products transferred from weaving to sewing: $2861750

(b) Cost of products transferred from sewing to finished goods: $4200500

(c) Cost of goods sold: $4380500

Working:

Raw Materials Inventory
Beg. Bal.	188000
3a. Jun. 30	620000	410000	3b. Jun. 30
		122000	3c. Jun. 30
End. Bal.	193000
Work in Process-Weaving Department
Beg. Bal.	415000
3b. Jun. 30	308000	2861750	2a. Jun. 30
3d. Jun. 30	1375000
3g. Jun. 30	1168750
End. Bal.	405000
Work in Process-Sewing Department
Beg. Bal.	620000
3b. Jun. 30	102000	4200500	2b. Jun. 30
3d. Jun. 30	595000
3g. Jun. 30	981750
2a. Jun. 30	2861750
End. Bal.	960000
Finished Goods Inventory
Beg. Bal.	1416000
2b. Jun. 30	4200500	4380500	2c. Jun. 30
End. Bal.	1236000

2.

Date	Account Titles and Explanation	Debit	Credit
Jun. 30 a.	Work in process inventory-Sewing	2861750
	Work in process inventory-Weaving		2861750
	(To record goods transferred from weaving to sewing department)
Jun. 30 b.	Finished goods inventory	4200500
	Work in process inventory-Sewing		4200500
	(To record goods completed and transferred to finished goods)
Jun. 30 c.	Accounts receivable	4800000
	Sales revenue		4800000
	(To record sales on account)
Jun. 30 c.	Cost of goods sold	4380500
	Finished goods inventory		4380500
	(To record the cost of sales)

3.

Date	Account Titles and Explanation	Debit	Credit
Jun. 30 a.	Raw materials inventory	620000
	Accounts payable		620000
	(To record materials purchased on account)
Jun. 30 b.	Work in process inventory-Weaving	308000
	Work in process inventory-Sewing	102000
	Raw materials inventory		410000
	(To record direct materials usage)
Jun. 30 c.	Factory overhead	122000
	Raw materials inventory		122000
	(To record indirect materials usage)
Jun. 30 d.	Work in process inventory-Weaving	1375000
	Work in process inventory-Sewing	595000
	Factory wages payable		1970000
	(To record direct labor usage)
Jun. 30 e.	Factory overhead	1550000
	Factory wages payable		1550000
	(To record indirect labor usage)
Jun. 30 f.	Factory overhead	168000
	Other Accounts		168000
	(To record other factory overheads incurred)
Jun. 30 g.	Work in process inventory-Weaving	1168750
	(85% x $1375000)
	Work in process inventory-Sewing	981750
	(165% x $595000)
	Factory overhead		2150500
	(To record factory overhead applied)
Jun. 30 h.	Factory wages payable	3520000
	Cash		3520000
	(To record payment of factory wages)