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Selected information from the Blake Corporation accounting records for June follows:
| Materials Inventory |
| BB (6/1) | 92,000 | | |
| | 464,000 | 419,000 | |
| | | | |
| Work-In-Process Inventory |
| Labor | 462,500 | | |
| EB(6/30) | 570,000 | | |
| | | | |
| Finished Goods Inventory |
| BB (6/1) | 294,000 | | |
| | 839,000 | 836,000 | |
| | | | |
| Cost of Goods Sold |
| | | | |
| | | 27,000 | |
| | | | |
| Manufacturing Overhead Control |
| | 343,000 | | |
| | | 343,000 | |
| | | | |
| Applied Manufacturing Overhead |
| | | 370,000 | |
| | 343,000 | | |
| | 27,000 | | |
Additional information for June follows:
- Labor wage rate was $25 per hour.
- During the month, sales revenue was $1,035,000, and selling and administrative costs were $239,000.
- This company has no indirect materials or supplies.
- The company applies manufacturing overhead on the basis of direct labor-hours.
Required:
a. What was the cost of direct materials purchased in June? $464,000
b. What was the over- or underapplied manufacturing overhead for June? overapplied manufacturing overhead, $27,000
c. What was the manufacturing overhead application rate in June? 20 per direct labor hour
d. What was the cost of products completed during June? $839,000
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?
I was able to work through the first 4 but am having problems solving e and f, thanks!
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