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ro-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:
ro-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 | $ 164,000 | $ 269,000 |
Work in process inventoryWeaving | 495,000 | 405,000 |
Work in process inventorySewing | 695,000 | 705,000 |
Finished goods inventory | 1,386,000 | 1,266,000 |
The following additional information describes the companys manufacturing activities for June: |
Raw materials purchases (on credit) | $ 615,000 | |
Factory payroll cost (paid in cash) | 3,100,000 | |
Other factory overhead cost (Other Accounts credited) | 200,000 | |
Materials used | ||
DirectWeaving | $ 262,000 | |
DirectSewing | 105,000 | |
Indirect | 166,000 | |
Labor used | ||
DirectWeaving | $1,250,000 | |
DirectSewing | 360,000 | |
Indirect | 1,575,000 | |
Overhead rates as a percent of direct labor | ||
Weaving | 85% | |
Sewing | 160% | |
Sales (on credit) | $4,950,000 | |
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