The first production department of Stone Incorporated reports the following for April. Conversion Direct Materials Percent Complete 65% Percent Complete 35% Beginning work in process inventory Units started this period Completed and transferred out Ending work in process inventory Units 61,000 327,000 305,000 83,000 85% 35% Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method. Equivalent units of production: Weighted average method Direct Materials Units Percent EUP Complete Conversion Percent EUP Complete Total 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 Ending Inventory Inventory Raw materials inventory $ 128,000 $ 233,000 Work in process inventory-Weaving 320,000 420,000 Work in process inventory-Sewing 645,000 705,000 Finished goods inventory 1,486,000 1,436,000 The following additional information describes the company's manufacturing activities for June: $ 600,000 192,000 $ 318,000 96,000 152,000 Raw materials purchases (on credit) Other actual overhead cost (paid in cash) Materials used Direct-Weaving Direct-Sewing Indirect Labor used Direct-Weaving Direct-Sewing Indirect Overhead rates as a percent of direct labor Weaving Sewing Sales (on credit) $ 1,250,000 395,000 1,525,000 80% 165% $ 5,450,000 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. 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. Hint: Compute the total production costs in each department and then subtract the ending inventory to get the amount transferred out of each department. Show less (a) Transferred to Sewing from Weaving (b) Transferred to Finished Goods from Sewing (c) Cost of goods sold 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. View transaction list Journal entry worksheet D > Record the goods transferred from weaving to sewing. Note: Enter debits before credits. General Journal Debit Credit Date June 30
