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Required information [The following information applies to the questions displayed below.] Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a

Required information

[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 Inventory Ending Inventory
Raw materials inventory $ 194,000 $ 229,000
Work in process inventoryWeaving 380,000 420,000
Work in process inventorySewing 735,000 740,000
Finished goods inventory 1,446,000 1,276,000

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

Raw materials purchases (on credit) $ 545,000
Factory wages cost (paid in cash) 3,190,000
Other factory overhead cost (Other Accounts credited) 200,000
Materials used
DirectWeaving $ 312,000
DirectSewing 108,000
Indirect 162,000
Labor used
DirectWeaving $ 1,400,000
DirectSewing 370,000
Indirect 1,525,000
Overhead rates as a percent of direct labor
Weaving 85 %
Sewing 160 %
Sales (on credit) $ 5,150,000

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. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, and (c) sale of finished goods.

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