Required intormation [The following information applies to the questions display

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Required intormation [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 $ 120,000 185,000 330,000 700,000 1,266,000 1,206,000 300,000 570,000 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 cont (other Aecounta credited) $ 500,000 3,060,000 156, 000 Materials used Direct-Weaving Direct-Sewing Indireet s 240,000 75,000 120,000 Labor used Direct-Weaving Direct-sewing Indireet $1,200,000 360, 000 ,500,000 overhead rates as a percent of direet labor Weaving Seving 801 150 4,000, 000 Sales (on credit)

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

= $1266000 + $3215000 - $1206000

= $3275000

2) Journal entries :-

Particulars Amount($) Beginning WIP Inventory 300000 Direct Materials 240000 Direct Labors 1200000 Overhead ($1200000*80%) 960000 Total 2700000 Less : Ending WIP Inventory (330000) Cost of Products Transferred form Weaving to Sewing 2370000

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