The Cake Factory has the following information for the month of March. Prepare a $($a$)$

schedule of cost of goods manufactured, $($b$)$ an income statement for the month ended March

$31,$ and $($c$)$ prepare only the inventory section of the balance sheet.

Purchases $$85,000$

Materials inventory, March $16,000$

Materials inventory, March $317,000$

Direct labor $25,000$

Factory overhead $34,000$

Work in process, March $117,000$

Work in process, March $3118,500$

Finished goods inventory, March $121,000$

Finished goods inventory, March $3123,000$

Sales $235,000$

Sales and administrative expenses $78,000$

$2.$ Prine Co$.$ manufactures bentwood chairs and tables. Wood for both products is steam$-$bent

in the same process, but different types of wood are used for each product. Thus, materials

cost is identified separately to each product. One production cycle uses $20$ board feet.

Labor cost is identified to the process as a whole, as is overhead cost. Data for the month of

July follow:

Chairs Tables

Direct material cost per board foot $ $3\mathrm{.}60$ $ $4\mathrm{.}20$

Number of parts formed per production cycle $(20$ board feet$)108$

Actual operating hours in July $120380$

Parts produced during July $4,0009,000$

Budgeted annual conversion cost:

Labor $$150,000$

Utilities $125,000$

Depreciation $65,000$

Other overhead $50,000$

Total $$390,000$

Budgeted annual operating hours for steam$-$bending $5,200$

$($a$)$ Compute July's predetermined rate for the steam$-$bending process.

$($b$)$ Compute July's direct material costs for chairs and tables.

$($c$)$ Compute conversion costs to be applied to chairs and tables in July.

$($d$)$ Journalize the following entries:

$(1)$ Assignment of direct materials to chairs and tables.

$(2)$ Application of conversion costs to chairs and tables.

$(3)$ The transfer of completed chairs and tables to the Finishing Department. All of

July's production was completed in July