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 |
$ |
130,000 |
|
$ |
269,000 |
|
| Work in process inventory—Weaving |
|
475,000 |
|
|
345,000 |
|
| Work in process inventory—Sewing |
|
690,000 |
|
|
870,000 |
|
| Finished goods inventory |
|
1,326,000 |
|
|
1,236,000 |
|
|
The following additional information describes the company’s
manufacturing activities for June:
|
|
|
|
| Raw materials purchases (on credit) |
$ |
685,000 |
|
| Factory payroll cost (paid in cash) |
|
3,130,000 |
|
| Other factory overhead cost (Other Accounts credited) |
|
182,000 |
|
| Materials used |
|
|
|
| Direct—Weaving |
$ |
250,000 |
|
| Direct—Sewing |
|
144,000 |
|
| Indirect |
|
138,000 |
|
| Labor used |
|
|
|
| Direct—Weaving |
$ |
1,325,000 |
|
| Direct—Sewing |
|
425,000 |
|
| Indirect |
|
1,625,000 |
|
| Overhead rates as a percent of direct labor |
|
|
|
| Weaving |
|
80 |
% |
| Sewing |
|
165 |
% |
| Sales (on credit) |
$ |
5,400,000 |
|
|
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.
Journal entry worksheet
- Record the purchase of raw materials on account.
Note: Enter debits before credits.
|
|
| Transaction |
General Journal |
Debit |
Credit |
| (a) |
|
|
|
|
