[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: Beginning Inventory $ 172,000 315,000 620,000 1,366,000 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 Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory 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) $ 555,000 184,000 $ 250,000 138,000 166,000 $ 1,375,000 395,000 1,575,000 80% 150% Ending Inventory $ 185,000 $ 4,250,000 400,000 850,000 1,226,000 tequired: 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.
[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: Beginning Inventory $ 172,000 315,000 620,000 1,366,000 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 Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory 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) $ 555,000 184,000 $ 250,000 138,000 166,000 $ 1,375,000 395,000 1,575,000 80% 150% Ending Inventory $ 185,000 $ 4,250,000 400,000 850,000 1,226,000 tequired: 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![[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:
Beginning
Inventory
$ 172,000
315,000
Work in process inventory-Sewing
620,000
Finished goods inventory
1,366,000
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
Raw materials inventory
Work in process inventory-Weaving
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)
$ 555,000
184,000
$ 250,000
138,000
166,000
$ 1,375,000
395,000
1,575,000
80%
150%
Ending
Inventory
$ 185,000
400,000
850,000
1,226,000
$ 4,250,000
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe36918fa-7e12-48b6-8015-c6e003e65c22%2F51850e8b-c55a-4c2b-9a13-01a9e6a33c00%2Fm1p7neo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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:
Beginning
Inventory
$ 172,000
315,000
Work in process inventory-Sewing
620,000
Finished goods inventory
1,366,000
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
Raw materials inventory
Work in process inventory-Weaving
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)
$ 555,000
184,000
$ 250,000
138,000
166,000
$ 1,375,000
395,000
1,575,000
80%
150%
Ending
Inventory
$ 185,000
400,000
850,000
1,226,000
$ 4,250,000
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education