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7-26 Selected information from the Blake Corporation accounting records for June follows. Materials Inventory BB (6/1) 85,000 457,000 412,000 Work-In-Process Inventory Labor 450,000 EB(6/30) 500,000

7-26

Selected information from the Blake Corporation accounting records for June follows.

Materials Inventory
BB (6/1) 85,000
457,000 412,000

Work-In-Process Inventory
Labor 450,000
EB(6/30) 500,000
Finished Goods Inventory
BB (6/1) 287,000
832,000 829,000

Cost of Goods Sold
20,000
Manufacturing Overhead Control
295,000
295,000

Applied Manufacturing Overhead
315,000
295,000
20,000

Additional information for June follows:

  • Labor wage rate was $30 per hour.
  • During the month, sales revenue was $1,021,000, and selling and administrative costs were $232,000.
  • This company has no indirect materials or supplies.
  • The company applies manufacturing overhead on the basis of direct labor-hours.

Required:

a. What was the cost of direct materials purchased in June?

b. What was the over- or underapplied manufacturing overhead for June?

c. What was the manufacturing overhead application rate in June?

d. What was the cost of products completed during June?

e. What was the balance of the Work-in-Process Inventory account at the beginning of June?

f. What was the operating profit (or loss) for June? Any over- or underapplied overhead is written off to Cost of Goods Sold.

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