Required informatio [The following information applies to the questions displaye

Question

Required informatio [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 Ending Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory Inventory Inventory $ 180,000 $ 193,000 455,000 705,000 1,216,000 480,000 665,000 1,446,000 The following additional information describes the company's manufacturing activities for June Raw materials purchases (on credit) Factory wages cost (paid in cash) Other factory overhead cost (Other Accounts credited) Materials used $ 665,000 3,070,000 186,000 Direct-Weaving Direct-Sewing Indirect $ 284,000 144,000 162,000 Labor used $1,350,000 445,000 1,525,000 Direct-Weaving Direct-Sewing Indirect Overhead rates as a percent of direct labor Weaving Sewing 85% 165% Sales (on credit) $5,200,000 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

Explanation / Answer

a) Cost of Products Transferred form Weaving to Sewing :-

b) Cost of Products Transferred form Sewing to Finished Goods.

c) Cost of Goods Sold :-

=Beginning Finished Inventory+Transferred form Sewing to Finished Goods- Ending Finished Inventory

= $1446000 + $4089750 - $1216000

= $4319750

Particulars Amount($) Beginning WIP Inventory 480000 Direct Materials 284000 Direct Labors 1350000 Overhead ($1350000*85%) 1147500 Total 3261500 Less : Ending WIP Inventory (455000) Cost of Products Transferred form Weaving to Sewing 2806500

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