Question

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	$	126,000		$	257,000
Work in process inventory—Weaving		475,000			480,000
Work in process inventory—Sewing		620,000			795,000
Finished goods inventory		1,306,000			1,296,000

The following additional information describes the company’s manufacturing activities for June:

Raw materials purchases (on credit)	$	520,000
Factory payroll cost (paid in cash)		3,470,000
Other factory overhead cost (Other Accounts credited)		208,000
Materials used
Direct—Weaving	$	254,000
Direct—Sewing		114,000
Indirect		196,000
Labor used
Direct—Weaving	$	1,350,000
Direct—Sewing		370,000
Indirect		1,750,000
Overhead rates as a percent of direct labor
Weaving		90	%
Sewing		160	%
Sales (on credit)	$	5,200,000

1. Prepare journal entries dated June 30 to record: (a) raw materials purchases, (b) direct materials usage, (c) indirect materials usage, (d) direct labor usage, (e) indirect labor usage, (f) other overhead costs, (g) overhead applied, and (h) payment of total payroll costs.

rev: 02_29_2020_QC_CS-202923

Answer 1

1) Journal entries

No	General Journal	Debit	Credit
a	Raw material	520000
	Account payable		520000
b	Work in process-Weaving	254000
	Work in process-Sewing	114000
	Raw material		368000
c	Manufacturing overhead	196000
	Raw material		196000
d	Work in process-Weaving	1350000
	Work in process-Sewing	370000
	Wages payable		1720000
e	Manufacturing overhead	1750000
	Wages payable		1750000
f	Manufacturing overhead	208000
	Account payable (other accounts)		208000
g	Work in process-Weaving (1350000*90%)	1215000
	Work in process-Sewing (370000*1.6)	592000
	Manufacturing overhead		1807000
h	Wages payable	3470000
	Cash		3470000