Use the following information for the Exercises below. [The following information applies to the questions displayed below.]
Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories:
Beginning Inventory Ending Inventory
Raw materials inventory $ 156,000 $ 277,000
Work in process inventory—Weaving 490,000 515,000
Work in process inventory—Sewing 700,000 945,000
Finished goods inventory 1,406,000 1,216,000
The following additional information describes the company’s manufacturing activities for June:
Raw materials purchases (on credit) $ 570,000
Factory wages cost (paid in cash) 3,390,000
Other factory overhead cost (Other Accounts credited) 162,000
Materials used
Direct—Weaving $ 248,000
Direct—Sewing 147,000
Indirect 182,000
Labor used
Direct—Weaving $ 1,225,000
Direct—Sewing 415,000
Indirect 1,750,000
Overhead rates as a percent of direct labor
Weaving 85 %
Sewing 150 %
Sales (on credit) $ 4,350,000
Exercise 16-14 Production cost flow and measurement; journal entries LO P1, P2, P3, P4
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.
2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, and (c) sale of finished goods.
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.