Chapter 20, Problem 14E

To determine

Product Cost:

The cost incurred on the production of a particular job or product is called product cost. The cost in production of a product usually involves raw material used, direct labor used and manufacturing overhead applied.

Cost Sheet:

The document which reports all the cost incurred on a particular job is called cost sheet. It contains all necessary information regarding the cost on specific production or job. The cost which typically shown in a cost sheet are; direct material, direct labor and manufacturing overhead.

To determine:

1. Computation of (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.

2. Journalizing (a) goods transferred from weaving to sewing, (b) goods transferred from sewing goods, and (c) sale of finished goods.