Pro - Weave manufactures stadium blankets by passing the products through a weaving department and then a se department. The following information is available regarding its June inventories: Beginning Inventory Ending Inve Raw materials inventory $ 170,000 $ 273,000 Work in process inventory-Weaving 495,000 375,000 Work in prod inventory-Sewing 735,000 855,000 Finished goods inventory 1,276,000 1,206,000 The following additional information describes the company's manufacturing activities for June: Raw materials purchases (on credit) $ 590 Other actual overhead cost (paid in cash) 162,000 Materials used Direct-Weaving $ 268,000 Direct-Sewing 13 Indirect 190,000 Labor used Direct-Weaving $ 1,400,000 Direct-Sewing 505,000 Indirect 1,625,000 Overhead as a percent of direct labor Weaving 85% Sewing 160% Sales (on credit) $ 4,500,000 Required: Compute the (a) products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inv to get the amount transferred out of each department. 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 god
Pro - Weave manufactures stadium blankets by passing the products through a weaving department and then a se department. The following information is available regarding its June inventories: Beginning Inventory Ending Inve Raw materials inventory $ 170,000 $ 273,000 Work in process inventory-Weaving 495,000 375,000 Work in prod inventory-Sewing 735,000 855,000 Finished goods inventory 1,276,000 1,206,000 The following additional information describes the company's manufacturing activities for June: Raw materials purchases (on credit) $ 590 Other actual overhead cost (paid in cash) 162,000 Materials used Direct-Weaving $ 268,000 Direct-Sewing 13 Indirect 190,000 Labor used Direct-Weaving $ 1,400,000 Direct-Sewing 505,000 Indirect 1,625,000 Overhead as a percent of direct labor Weaving 85% Sewing 160% Sales (on credit) $ 4,500,000 Required: Compute the (a) products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and cost of goods sold. Hint: Compute the total production costs in each department and then subtract the ending inv to get the amount transferred out of each department. 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 god
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text: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 Ending Inventory
Raw materials inventory $ 170,000 $ 273,000 Work in process inventory-Weaving 495,000 375,000 Work in process
inventory-Sewing 735,000 855,000 Finished goods inventory 1,276,000 1,206,000 The following additional
information describes the company's manufacturing activities for June: Raw materials purchases (on credit) $ 590,000
Other actual overhead cost (paid in cash) 162,000 Materials used Direct-Weaving $ 268,000 Direct-Sewing 135,000
Indirect 190,000 Labor used Direct-Weaving $ 1,400,000 Direct-Sewing 505,000 Indirect 1,625,000 Overhead rates
as a percent of direct labor Weaving 85% Sewing 160% Sales (on credit) $ 4,500,000 Required: 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. 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.
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