Assume that the following T accounts represent data from the Blackett Corporation's accounting

records. Blackett uses the materials inventory for direct materials only with a separate supplies account

for indirect materials.

Write the missing amounts represented by the letters (a)-(g) next to the letter in each T-account.

Cost of Goods Sold Materials Inventory Finished Goods

18,250 (a) 2,250

(c) (d) 7,500 7,250

2,375 (f)

Work in Process Manufacturing Overhead

1,500 4,000 (g)

(b)

Labor 8,000

O/H (e) 19,650

2,900

b. Determine the company's predetermined overhead rate, based on direct material cost. Be sure to

express your answer as a rate.

c. Assume that Blackett desires to allocate overhead variances to Cost of Goods Sold, Work in Process

and Finished Goods, based upon ending balances in each account.

Compute the overhead variance (specify over/underapplied)

Based on ending account balances, determine the allocations to the 3 accounts (indicated above)

and provide a journal entry (below) that clears the overhead account.

JOURNAL

Account Descriptions	Debit	Credit