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 Inventory $ 196,000 440,000 Ending Inventory Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory 630,000 1,426,000 $ 241,000 460,000 720,000 1,376,000 The following additional information describes the company's manufacturing activities for June: 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) $ 605,000 190,000 $ 250,000 93,000 184,000 $ 1,250,000 390,000 1,700,000 90% 150% $ 4,150,000 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 sew to finished goods, (c) sale of finished goods, and (d) cost of goods sold. Complete this question by entering your answers in the tabs below.
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 Inventory $ 196,000 440,000 Ending Inventory Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory 630,000 1,426,000 $ 241,000 460,000 720,000 1,376,000 The following additional information describes the company's manufacturing activities for June: 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) $ 605,000 190,000 $ 250,000 93,000 184,000 $ 1,250,000 390,000 1,700,000 90% 150% $ 4,150,000 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 sew to finished goods, (c) sale of finished goods, and (d) cost of goods sold. Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dinesh Bhai
![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 then a
sewing department. The following information is available regarding its June inventories:
Raw materials inventory
Work in process inventory-Weaving
Work in process inventory-Sewing
Finished goods inventory
Beginning
Inventory
$ 196,000
440,000
630,000
1,426,000
Ending Inventory
$ 241,000
460,000
720,000
1,376,000
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on credit)
Other actual overhead cost (paid in cash)
$ 605,000
190,000
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)
$ 250,000
93,000
184,000
$ 1,250,000
390,000
1,700,000
90%
150%
$ 4,150,000
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
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.
(a) Transferred from Weaving to Sewing
(b) Transferred from Sewing to Finished Goods
(c) Cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84cd96a4-2e2d-4025-be12-a52240c863cd%2F6fbd082b-6036-4f12-8639-08e6df41d703%2Faq8czg7_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 then a
sewing department. The following information is available regarding its June inventories:
Raw materials inventory
Work in process inventory-Weaving
Work in process inventory-Sewing
Finished goods inventory
Beginning
Inventory
$ 196,000
440,000
630,000
1,426,000
Ending Inventory
$ 241,000
460,000
720,000
1,376,000
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on credit)
Other actual overhead cost (paid in cash)
$ 605,000
190,000
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)
$ 250,000
93,000
184,000
$ 1,250,000
390,000
1,700,000
90%
150%
$ 4,150,000
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.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
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.
(a) Transferred from Weaving to Sewing
(b) Transferred from Sewing to Finished Goods
(c) Cost of goods sold
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Step 1: Introducing journal entries and rules of debit and credit.
VIEWStep 2: (a) Calculation of cost of products transferred from weaving to sewing.
VIEWStep 3: (b) Calculation of cost of products transferred from sewing to finished goods.
VIEWStep 4: (c) Calculation of cost of goods sold.
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