Question
12. 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
12. 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 | $ | 152,000 | $ | 277,000 | ||
Work in process inventoryWeaving | 300,000 | 400,000 | ||||
Work in process inventorySewing | 665,000 | 735,000 | ||||
Finished goods inventory | 1,446,000 | 1,376,000 | ||||
The following additional information describes the companys manufacturing activities for June:
Raw materials purchases (on credit) | $ | 625,000 | |
Factory wages cost (paid in cash) | 3,080,000 | ||
Other factory overhead cost (Other Accounts credited) | 216,000 | ||
Materials used | |||
DirectWeaving | $ | 318,000 | |
DirectSewing | 96,000 | ||
Indirect | 200,000 | ||
Labor used | |||
DirectWeaving | $ | 1,300,000 | |
DirectSewing | 490,000 | ||
Indirect | 1,675,000 | ||
Overhead rates as a percent of direct labor | |||
Weaving | 85 | % | |
Sewing | 160 | % | |
Sales (on credit) | $ | 5,250,000 | |
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 wages costs.
Record the purchase of raw materials on account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record the usage of direct materials. Note: Enter debits before credits. Transaction General Journal Debit Credit Record the usage of indirect materials. Note: Enter debits before credits. Transaction General Journal Debit Credit Record the cost of direct labor incurred, but not yet paid Note: Enter debits before credits. Transaction General Journal Debit Credit Record the cost of indirect labor incurred, but not yet paid Note: Enter debits before credits. Transaction General Journal Debit Credit Record the cost of other overhead (credit Other accounts) Note: Enter debits before credits. Transaction General Journal Debit Credit Record the application of overhead Note: Enter debits before credits. Transaction General Journal Debit Credit Record the payment of total factory payroll Note: Enter debits before credits. Transaction General Journal Debit CreditStep by Step Solution
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