Question
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:
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 | $ | 194,000 | $ | 237,000 | ||
| Work in process inventoryWeaving | 385,000 | 490,000 | ||||
| Work in process inventorySewing | 745,000 | 825,000 | ||||
| Finished goods inventory | 1,306,000 | 1,396,000 | ||||
The following additional information describes the companys manufacturing activities for June:
| Raw materials purchases (on credit) | $ | 690,000 | |
| Factory wages cost (paid in cash) | 3,360,000 | ||
| Other factory overhead cost (Other Accounts credited) | 184,000 | ||
| Materials used | |||
| DirectWeaving | $ | 304,000 | |
| DirectSewing | 81,000 | ||
| Indirect | 136,000 | ||
| Labor used | |||
| DirectWeaving | $ | 1,300,000 | |
| DirectSewing | 515,000 | ||
| Indirect | 1,525,000 | ||
| Overhead rates as a percent of direct labor | |||
| Weaving | 85 | % | |
| Sewing | 155 | % | |
| Sales (on credit) | $ | 5,350,000 | |
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.
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