Answer:
a) Materials Inventory Purchases 450,000
b) Over applied Manufacturing Overhead $ 13,000
c) Overhead application rate $19.46
d) Cost of products completed during June= $ 825,000
e) Work-in-Process Inventory account at the beginning of June $ 225,000
f) Operating Loss for June is -$ 8000
Explanation:
<u><em>Blake Corporation</em></u>
<u><em>Cost of Goods Sold Schedule</em></u>
Materials Inventory Beginning Balance 78,000
Add Materials Inventory Purchases 450,000 (given)
Less Materials Inventory Ending Balance -405,000
Direct Materials Used 123,000
Direct Labor (13,000* 30) = $ 390,000
Add Manufacturing Overheads = $ 253,000
Total Manufacturing Costs = $ 766,000
Add opening Work In Process $ 225,000
Cost of Goods available for manufacture $ 991000
Less Ending Work In Process -$ 166,000
Cost of Goods Manufactured 825000 (given)
Add Opening Finished Goods 280,000
Cost of Goods available for Sale 1105,000
Less Finished Goods Inventory -283,000
Un adjusted Cost of Goods Sold 822,000 ( given)
Less Over applied Manufacturing Overhead - (13,000)
Adjusted Cost of Goods Sold $ 809,000
<u><em>Blake Corporation</em></u>
<u><em>Income Statement</em></u>
Sales $1,026,000
less Cost of Goods Sold 809,000
Gross Profit = $ 217,000
Less selling and administrative costs $225,000
Operating Loss -(8000)
a) Materials Inventory Purchases 450,000
b) Applied Overhead = $ 253,000
Actual Overhead = $ 240,000
Over applied Manufacturing Overhead = Applied Overhead - Actual Overhead= 253,000- 240,000= $ 13,000
c) Overhead application rate = 253,000/13000= $19.46
d) Cost of products completed during June= $ 825,000
e) Work-in-Process Inventory account at the beginning of June $ 225,000
f) Operating Loss for June is -$ 8000
