value: 1.25 points Selected information from the Blake Corporation accounting re

Question

value: 1.25 points Selected information from the Blake Corporation accounting records for June follows: Materials Inventory Work-In-Process Inventory BB (6/1) 80,000 Labor 500,000 EB(6/30) 450,000 452,000 407,000 Finished Goods Inventory Cost of Goods Sold BB (6/1) 282,000 827,000 824,000 15,000 Manufacturing Overhead Control Applied Manufacturing Overhead 235,000 250,000 235,000 15,000 235,000 Additional information for June follows: Labor wage rate was $40 per hour. During the month, sales revenue was $1,030,000, and selling and administrative costs were $227,000 This company has no indirect materials or supplies. The company applies manufacturing overhead on the basis of direct labor hours. Required

Explanation / Answer

ANSWER TO THE QUESTION

(d) Cost of products completed in June $ 827,000

(e) Work in process at the end of June $248,000

(f) Operating Profit= Sale value-Cost of Good sold-manufacturing overhead-Selling and Admin expenses

=$10,30,000-$285,000--$235,000-$227,00

=$283,000

Operating profit for the month of june $ 283,000

Particulars Value Opening Inventories           80,000 Inventories purchased in June         452,000 Closing Inventories         407,000 Material Issed to WIP         125,000 Labor         500,000 Electricity         450,000 TOTAL WIP       1,075,000 Trf to Finished Goods Inventories         827,000 Closing WIP         248,000 FINISHED GOODS INVENTORIES Opening balance         282,000 Trf from WIP         827,000 TOTAL Finished Goods       1,109,000 Closing Inventories in Finished Goods         824,000 Cost of Goods Sold         285,000

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