The following cost data for the year ending 30 June 2020 relate to Excite Technologies Ltd.

Medical Equip Division:

Sales 480,000

Inventories at 1 july 2019

Raw materials 15,000

Work in process ?

Finished goods ?

Inventories at 30 June 2020

Raw materials 30,000

Work in process 5,000

Finished goods 25,000

Direct material used ?

Purchases of raw materials ?

Direct labour 125,000

Actual manufacturing overhead 189,500

Selling and administrative expenses ?

Total manufacturing costs 367,500

Cost of goods manufactured 377,500

Cost of goods available for sale 397,500

Cost of goods sold ?

Gross profit ?

Net profit60,500

Aero Engines Division:

Sales ?

Inventories at 1 july 2019

Raw materials ?

Work in process 140,000

Finished goods 200,000

Inventories at 30 June 2020

Raw materials 320,000

Work in process ?

Finished goods ?

Direct material used 380,000

Purchases of raw materials 460,000

Direct labour ?

Actual manufacturing overhead 1,341,000

Selling and administrative expenses ?

Total manufacturing costs 2,630,000

Cost of goods manufactured 2,650,000

Cost of goods available for sale ?

Cost of goods sold 2,721,000

Gross profit 579,000

Net profit 159,000

The company uses normal costing and manufacturing overhead is applied at the rate of 150% of direct labour cost.

Over or under-applied manufacturing overhead is closed on an annual basis to the cost of goods sold and this has been included in the above data.

Required:

(a) Interpret the relationship between the cost figures above to determine the missing amounts in each of the divisions shown above.

(24 marks)

(b) Calculate the amounts to be charged to work in process, finished goods inventory and cost of goods sold for the Aero Engines Division at the end of 30 June 2020 if the proration method is used. Provide your final answer to the nearest dollar. (4 mark)

(c) Prepare the necessary journal entries for (b) to describe the flow of costs. (2 mark)

Present all workings in a clear and succinct manner.