The following is selected information from Blake Corporation's accounting records for June: Materials inventory BB (6/1) 91,000
Question:
The following is selected information from Blake Corporation's accounting records for June:
Materials inventory | ||||
BB (6/1) | 91,000 | |||
463,000 | 418,000 | |||
inventory in progress | ||||
Manpower of labour | 360.000 | |||
EB(6/30) | 560.000 | |||
Finished Goods Inventory | ||||
BB (6/1) | 293,000 | |||
838,000 | 835,000 | |||
cost of goods sold | ||||
26,000 | ||||
Control of general manufacturing expenses | ||||
370.000 | ||||
370.000 | ||||
Manufacturing overhead applied | ||||
396,000 | ||||
370.000 | ||||
26,000 |
Additional information for June below:
The labor wage was $20 per hour.
For the month, sales revenue was $1,033,000 and selling and administrative costs were $238,000.
This company has no indirect materials or supplies.
The company allocates manufacturing overhead costs based on direct labor hours.
Required:
a. What was the cost of direct materials purchased in June?
b. What was the overapplied or underapplied manufacturing overhead cost for June?
C. What was the manufacturing overhead cost allocation rate in June?
d. What was the cost of finished goods 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?
Fundamentals of Cost Accounting
ISBN: 978-0078025525
4th edition
Authors: William Lanen, Shannon Anderson, Michael Maher