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 purchases (on credit) Other actual overhead cost (paid Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory The following additional information describes the company's manufacturing activities for June: in cash) Materials used Direct-Weaving Direct-Sewing Indirect Labor used Direct-Weaving Direct-Sewing Indirect Overhead rates as a percent of direct labor Beginning Inventory $ 134,000 385,000 575,000 1,336,000 Weaving Sewing Sales (on credit) $ 515,000 202,000 $ 242,000 90,000 188,000 $ 1,325,000 380,000 1,650,000 85% 160% $ Ending Inventory $ 189,000 4,350,000 365,000 960,000 1,396,000 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.
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 purchases (on credit) Other actual overhead cost (paid Raw materials inventory Work in process inventory-Weaving Work in process inventory-Sewing Finished goods inventory The following additional information describes the company's manufacturing activities for June: in cash) Materials used Direct-Weaving Direct-Sewing Indirect Labor used Direct-Weaving Direct-Sewing Indirect Overhead rates as a percent of direct labor Beginning Inventory $ 134,000 385,000 575,000 1,336,000 Weaving Sewing Sales (on credit) $ 515,000 202,000 $ 242,000 90,000 188,000 $ 1,325,000 380,000 1,650,000 85% 160% $ Ending Inventory $ 189,000 4,350,000 365,000 960,000 1,396,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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:
in cash)
Materials used
Raw materials inventory
Work in process inventory-Weaving
Work in process inventory-Sewing
Finished goods inventory
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on
credit)
Other actual overhead cost (paid
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)
Beginning
Inventory
$ 134,000
385,000
575,000
1,336,000
Required Required
1
2
$ 515,000
202,000
(a) Transferred from Weaving to
Sewing
(b) Transferred from Sewing to
Finished Goods
(c) Cost of goods sold
$ 242,000
90,000
188,000
< Required 1
$
1,325,000
380,000
1,650,000
85%
160%
$
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.
4,350,000
Complete this question by entering your answers in the tabs below.
Ending
Inventory
$ 189,000
365,000
960,000
1,396,000
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.
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F601d2812-6e27-4ba1-b94e-fdfde12574b5%2F78b8f5c2-56a7-4476-993d-94f2fc8ce7b5%2Fz1k5wsb_processed.png&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:
in cash)
Materials used
Raw materials inventory
Work in process inventory-Weaving
Work in process inventory-Sewing
Finished goods inventory
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on
credit)
Other actual overhead cost (paid
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)
Beginning
Inventory
$ 134,000
385,000
575,000
1,336,000
Required Required
1
2
$ 515,000
202,000
(a) Transferred from Weaving to
Sewing
(b) Transferred from Sewing to
Finished Goods
(c) Cost of goods sold
$ 242,000
90,000
188,000
< Required 1
$
1,325,000
380,000
1,650,000
85%
160%
$
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.
4,350,000
Complete this question by entering your answers in the tabs below.
Ending
Inventory
$ 189,000
365,000
960,000
1,396,000
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.
Required 2 >
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