Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required informationUse the following information for the Exercises below. [The following information applies to the questions displayed below.] Pro-Weave manufactures stadium blankets by passing the

Required informationUse the following information for the Exercises below.

[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 $126,000 $273,000

Work in process inventoryWeaving 405,000 425,000

Work in process inventorySewing 575,000 910,000

Finished goods inventory 1,356,000 1,476,000

The following additional information describes the company's manufacturing activities for June:

Raw materials purchases (on credit) $570,000

Factory wages cost (paid in cash) 3,445,000

Other factory overhead cost (Other Accounts credited) 194,000

Materials used

DirectWeaving $274,000

DirectSewing 123,000

Indirect 122,000

Labor used

DirectWeaving $1,250,000

DirectSewing 470,000

Indirect 1,725,000

Overhead rates as a percent of direct labor

Weaving 85%

Sewing 165%

Sales (on credit) $4,700,000

rev: 02_19_2019_QC_CS-159475

Exercise 20-14 Production cost flow and measurement; journal entries LO P1, P2, P3, P4

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting

Authors: Belverd E Needles, Marian Powers

11th Edition

0538755164, 9780538755160

Students also viewed these Accounting questions

Question

2. To store it and

Answered: 1 week ago