Question
The following additional information describes the companys manufacturing activities for June: Raw materials purchases (on credit) $ 590,000 Other actual overhead cost (paid in cash)
The following additional information describes the companys manufacturing activities for June:
Raw materials purchases (on credit) | $ 590,000 |
---|---|
Other actual overhead cost (paid in cash) | 172,000 |
Materials used | |
DirectWeaving | $ 310,000 |
DirectSewing | 78,000 |
Indirect | 162,000 |
Labor used | |
DirectWeaving | $ 1,275,000 |
DirectSewing | 540,000 |
Indirect | 1,625,000 |
Overhead rates as a percent of direct labor | |
Weaving | 90% |
Sewing | 160% |
Sales (on credit) | $ 4,700,000 |
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.
3. Prepare journal entries dated June 30 to record: (a) raw materials purchases, (b) direct materials used, (c) indirect materials used, (d) direct labor used, (e) indirect labor used, (f) other actual overhead costs, and (g) overhead applied
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