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irga5000 [103]
3 years ago
8

Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The follow

ing information is available regarding its June inventories:
Beginning Inventory Ending Inventory
Raw materials inventory $124,000 $225,000
Work in process inventory-weaving 475,000 415,000
Work in process inventory-Sewing 645,000 725,000
Finished goods inventory 1,276,000 1,416,00


The following additional information describes the company's manufacturing activities for June.


Raw materials purchases (on credit) $505,000
Factory wages cost (paid in cash) 3,220,000
Other factory overhead cost (Other Accounts credited) 186,000
Materials used
Direct-Weaving $304,000
Direct-Sewing 84,000
Indirect 164,000
Lbor used
Direct-Weaving $1,275,000
Direct-Sewing 485,000
Indirect 1,525,000
Overhead rates as a percent of direct labor
Weaving 85%
Sewing 155%
Sales (on credited) $5,350,000


Required:
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
h. payment of total wages costs.
Business
1 answer:
taurus [48]3 years ago
6 0

Answer:

<em>a. raw materials purchases</em>

raw materials  505,000 debit

  account payable   505,000 credit

<em>b. direct materials usage</em>

Weaving WIP  304,000 debit

Sewing WIP      84,000 debit

      Raw Materials        388,000 credit

<em>c. indirect materials usage</em>

Factory overhead 164,000 debit

      Raw Materials        164,000 credit

<em>d. direct labor usage</em>

Weaving WIP  1,275,000 debit

Sewing WIP       485,000 debit

      Wages Payables         1,760,000 credit

<em>e . indirect labor usage</em>

Factory overhead  1,525,000 debit

      Wages Payables         1,525,000 credit

<em>f. other overhead costs</em>

Factory Overhead 186,000 debit

      Other Account Payable 186,000 credit

<em>g. overhead applied</em>

Weaving WIP  1,083,750 debit

Sewing WIP        751,750 debit

      factory Overhead         1,760,000 credit

<em>h. payment of total wages costs.</em>

Wages Payable    3,285,000 debit

           Cash                3,285,000 credit

Explanation:

the direct cost is assigned to each department while the indirect cost into factory overhead

g) overhead calculations:

Weaving  $1,275,000 labor x 85%   =   1,083,750

Sewing    $  485,000 labor x 155%  =<u>      751,750</u>

Total applied overehead:                       1,835,500

h) total wages cost:

Wages payable T-account

DEBIT              CREDIT

--------------------------------------

           d)         1,760,000

           e)    <u>     1,525,000</u>

       Balance 3,285,000

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