Question

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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.
  

	April 30				May 31
Inventories
Raw materials	$	43,000			$	52,000
Work in process		10,200				21,300
Finished goods		63,000				35,600
Activities and information for May
Raw materials purchases (paid with cash)						210,000
Factory payroll (paid with cash)						345,000
Factory overhead
Indirect materials						15,000
Indirect labor						80,000
Other overhead costs						120,000
Sales (received in cash)						1,400,000
Predetermined overhead rate based on direct labor cost						70	%

Compute the following amounts for the month of May using T-accounts.

1. Cost of direct materials used.
2. Cost of direct labor used.
3. Cost of goods manufactured.
4. Cost of goods sold.*
5. Gross profit.
6. Overapplied or underapplied overhead.

*Do not consider any underapplied or overapplied overhead.

Answer 1

Working notes:

Beginning raw materials - April 30	$43,000
Add: Purchase of raw materials	$210,000
Total raw materials available for use	$253,000
Less: Ending raw materials - May 31	($52,000)
Total raw materials used	$201,000
Cost of direct labor used	$345,000
Beginning raw materials - April 30	$43,000
Add: Purchase of raw materials	$210,000
Total raw materials available for use	$253,000
Less: Ending raw materials - May 31	($52,000)
Total raw materials used		$201,000
Cost of direct labor used		$345,000
Manufacturing overheads:
Indirect materials	$15,000
Indirect labor	$80,000
Other overhead costs	$120,000
Total manufacturing overheads		$215,000
Total Manufacturing Cost		$761,000
Add: Beginning work in process - April 30		$10,200
Less: Ending work in process - May 31		($21,300)
Cost of Goods Manufactured		$749,900
Cost of Goods Manufactured		$749,900
Add: Beginning finished goods - April 30		$63,000
Less: Ending finished goods - May 31		($35,600)
Cost of Goods Sold		$777,300
Sales Revenue		$1,400,000
Less: Cost of Goods Sold		($777,300)
Gross Profit		$622,700

Note: As per HOMEWORKLIB RULES, the first four sub parts should be answered but i have answered first five four sub parts. Hence, please post the remaining sub part separately. Please do not give me the negative rating for not answering all the questions as i have just followed HOMEWORKLIB RULES.