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Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department....

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**

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Expert Solution

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)

ekkarill92 answered 1 year ago
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