Beginning Inventor Ending InventorV Raw materials inventory Work in process inve

Question

Beginning Inventor Ending InventorV Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory $190,000 $ 277,000 445,000 900,000 1,246,000 495,000 655,000 1,296,000 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 $515,000 3,250,000 174,000 Direct-Weaving Direct-Sewing Indirect $ 256,000 144,000 172,000 Labor used Direct-Weaving Direct-Sewing Indirect $1,350,000 500,000 1,700,000 Overhead rates as a percent of direct labor Weaving Sewing 85% 160% Sales (on credit) $4,200,000

Explanation / Answer

1 Weaving Beginning inventory 495000 Direct material 256000 Direct labor 1350000 Manufacturing Overheads 1147500 (1350000*85%) Total 3248500 Less Ending inventory 445000 Tranferred to sewing department 2803500 2 Sewing Beginning inventory 655000 Tranferred from sewing department 2803500 Direct material 144000 Direct labor 500000 Manufacturing Overheads 800000 (500000*160%) Total 4902500 Less Ending inventory 900000 Transferred to finished goods inventory 4002500 3 Finished goods Beginning inventory 1296000 Add Transferred from sewing department 4002500 Total 5298500 Less Ending inventory 1246000 Cost of goods sold 4052500 Journal entries 1 Work in progress sewing department 2803500                 Work in progress weaving department 2803500 2 Finished goods inventory 4002500               Work in progress sewing department 4002500 3 Accounts receivable 4200000              Sales revenue 4200000 4 Cost of goods sold 4052500              Finished goods inventory 4052500

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