Required information

Skip to question

[The following information applies to the questions displayed below.] Pro-Weave manufactures stadium blankets by passing the products through a weaving department and then a sewing department. The following information is available regarding its June inventories:

	Beginning Inventory	Ending Inventory
Raw materials inventory	$ 190,000	$ 225,000
Work in process inventoryWeaving	450,000	480,000
Work in process inventorySewing	710,000	960,000
Finished goods inventory	1,266,000	1,306,000

The following additional information describes the companys manufacturing activities for June:

Raw materials purchases (on credit)	$ 670,000
Other actual overhead cost (paid in cash)	182,000
Materials used
DirectWeaving	$ 262,000
DirectSewing	90,000
Indirect	150,000
Labor used
DirectWeaving	$ 1,250,000
DirectSewing	495,000
Indirect	1,700,000
Overhead rates as a percent of direct labor
Weaving	80%
Sewing	165%
Sales (on credit)	$ 5,450,000

rev: 05_27_2021_QC_CDR-376

Required: 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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, (c) sale of finished goods, and (d) cost of goods sold.