Question
Selected information from the Blake Corporation accounting records for June follows. Materials Inventory BB (6/1) 76,000 448,000 403,000 Work-In-Process Inventory Labor EB(6/30) 315,000 410,000
Selected information from the Blake Corporation accounting records for June follows. Materials Inventory BB (6/1) 76,000 448,000 403,000 Work-In-Process Inventory Labor EB(6/30) 315,000 410,000 Cost of Goods Sold 11,000 Manufacturing Overhead Control 199,000 199,000 Finished Goods Inventory BB (6/1) 278,000 823,000 820,000 Applied Manufacturing Overhead 199,000 11,000 Additional information for June follows: Labor wage rate was $30 per hour. During the month, sales revenue was $1,022,000, and selling and administrative costs were $223,000. This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor-hours. 210,000 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started