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Use the following information for the Exercises below
Use the following information for the Exercises below. [The following information applies to the questions displayed below.) f2 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 Ending Inventory Inventory $ 180,000 $ 185,000 480,000 410,000 Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory 575,000 1,286,000 705,000 1,436,000 The following additional information describes the company's manufacturing activities for June: CE $ 600,000 3,430,000 204,000 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) $ 266,000 96,000 132,000 $1,225,000 505,000 1,700,000 85% 160% $5,400,000 Exercise 20-14 Production cost flow and measurement; journal entries LO 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, (c) sale of finished goods, and (d) cost of goods sold.
from sewing to finished goods, (c) sale of finished goods, and (d) cost of goods sold. Complete this question by entering your answers in the tabs below. Required Required 1 2 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. (a) Sewing Finished (b) Goods Cost of goods (c) sold Required 1 Required 2 >
1. 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 payroll costs. View transaction list Journal entry worksheetf
Expert Solution
| Solution 1: | |
| Pro-Weave Manufacturer | |
| Cost of products transferred from weaving to sewing | |
| Particulars | Amount |
| Raw material used in Weaving | $2,66,000.00 |
| Direct Labor - Weaving | $12,25,000.00 |
| Manufacturing overhead Applied - Weaving (85% of DL) | $10,41,250.00 |
| Cost Incurred during the period in production | $25,32,250.00 |
| Add: Opening WIP | $4,80,000.00 |
| Less: ending WIP | $4,10,000.00 |
| Cost of goods transferred from Weaving to Sewing | $26,02,250.00 |
| Pro-Weave Manufacturer | |
| Cost of products transferred from Sewing to Finished Goods | |
| Particulars | Amount |
| Cost of goods transferred from Weaving | $26,02,250.00 |
| Raw material used in Sewing | $96,000.00 |
| Direct Labor - Sewing | $5,05,000.00 |
| Manufacturing overhead Applied - Weaving (160% of DL) | $8,08,000.00 |
| Cost Incurred during the period in production | $40,11,250.00 |
| Add: Opening WIP | $5,75,000.00 |
| Less: ending WIP | $7,05,000.00 |
| Cost of goods manufactured and transferred to finished goods | $38,81,250.00 |
| Pro-Weave Manufacturer | |
| Schedule of cost of goods Sold | |
| Particulars | Amount |
| Beginning finished goods inventory | $12,86,000.00 |
| Add: Cost of goods manufactured | $38,81,250.00 |
| Less: ending finished goods inventory | $14,36,000.00 |
| Cost of goods sold | $37,31,250.00 |
| Solution 2: | |||
| Journal Entries - Pro-Weave Manufacturer | |||
| Event | Particulars | Debit | Credit |
| a | Work in Process - Sewing Department Dr | $26,02,250.00 | |
| To Work in process - Weaving Department | $26,02,250.00 | ||
| (To cost of completed units in weaving transferred to Sewing department) | |||
| b | Finished Goods Inventory Dr | $38,81,250.00 | |
| To Work in process - Sewing Department | $38,81,250.00 | ||
| (To cost of completed units in sewing transferred to finished goods) | |||
| c-1 | Accounts receivables Dr | $54,00,000.00 | |
| To Sales Revenue | $54,00,000.00 | ||
| (To record sale finished goods) | |||
| c-2 | Cost of goods sold Dr | $37,31,250.00 | |
| To Finished goods inventory | $37,31,250.00 | ||
| (Being cost of inventory sold transferred to COGS) |
Part 2:
| Journal Entries - Pro-Weave Manufacturer | |||
| Event | Particulars | Debit | Credit |
| a | Raw materials inventory Dr | $6,00,000.00 | |
| To Accounts payable | $6,00,000.00 | ||
| (To record purchase of materials on account) | |||
| b | Work In Process - Weaving Dr | $2,66,000.00 | |
| Work In Process - Sewing Dr | $96,000.00 | ||
| To Raw materials inventory | $3,62,000.00 | ||
| (To record direct material usage) | |||
| c | Manufacturing overhead Dr | $1,32,000.00 | |
| To Raw materials inventory | $1,32,000.00 | ||
| (To record Indirect material usage) | |||
| d | Work In Process - Weaving Dr | $12,25,000.00 | |
| Work In Process - Sewing Dr | $5,05,000.00 | ||
| To Factory wages payable | $17,30,000.00 | ||
| (To record direct labor incurred but not paid) | |||
| e | Manufacturing overhead Dr | $17,00,000.00 | |
| To Factory wages payable | $17,00,000.00 | ||
| (To record Indirect labor incurred but not paid) | |||
| f | Manufacturing overhead Dr | $2,04,000.00 | |
| To Other accounts | $2,04,000.00 | ||
| (To record cost of other overheads) | |||
| g | Work In Process - Weaving Dr | $10,41,250.00 | |
| Work In Process - Sewing Dr | $8,08,000.00 | ||
| To Manufacturing overhead | $18,49,250.00 | ||
| (To record application of overhead) | |||
| h | Factory wages payable Dr | $34,30,000.00 | |
| To Cash | $34,30,000.00 | ||
| (To record payment of factory payroll) |
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