Question

Required information (The following information applies to the questions displayed below.) 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 $ $40,000 9,400 53,000 58,000 20,100 33,900 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 181,000 150,000 9,000 34,500 118,000 1,500,000 558 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

_ Raw Malemale (RM) RM-Aprel 30 $ 40,000 RM-purchases $ 181000 $ 9000 Indired macletiak 8454000 DM used. F: RM- May 31 58000_1 Warck in Picocess (WIP). WIP-April 30 $ 9400 DM useef 154000 Dh used' 115500 $322325 cost of goede manufactured -Querchead applied o_63525 Wip-May 31 9 20100 Finished Gends (EG) Inventory_ FG-Aprel 30 53000 Gosto.fgoede manjks 322325 834 1425 Cost of goods sold F Gr Mayat 18 33900 faclony Paxmoll Freelony Payroll 18150.000 $ 34,500 Indirect labore $115,500 Dk used - 0

- Facony Overhead. Indiceed matemalie 2006 1635as | Ovenhead applied Indiceed labor s 34500 OtherOrecheadcand $1180.00 Underapplied on 1$ 97975 _Income Statement Parcial) - Sales --- 4500,000 Cost of goods sold fs 341,425 . 4 Guess Preeitet. Ig 1.158,575 Explanations 1. Cost of died materials used. i Beginning raw materials. 3 $ 40,000 plus pürehase a $189,000 .: Raw material available - Paa1000 Less i endeng how maleveral comenclony = f (58,000) Total reaw materialused" $163000 hesi Indlereed material used og.(9000) cost of deel material ordo f154000

2. Cost of dinced labor used/ Total faclony payroll $150,000 hers & Indinced labore = (34,500) cost of died labor used. 795,500 3. Costof goods manufactureed. Beginning EwIP inventory § 9400 Plus'a Doreet materiale = $154000 Plus: Direel labor i € 4415500 plusOverhead applied & 8 63525 C$54. x şiis500) Total worek in process = $342425 hess? Ending lali p inventony = $(80100) cost of goods manufactureol - $ 322325 kr. Cost of goods sold. Beginning frashed goods inventoray - $ 53000 Plus: Cost of goods manufactured!'5$ 3a23as hess Eneling Jenis heel goods movendony - $ (33900) " cost of goods sold - $ 343425 5. Gross Profeti . . $1,500,000 Cost of goods sold - $ (341428) Groom Profil - $ 1+58, 575 Sales

ru 6. Actual overhead encorered Indi reel materials o f 9000 Indireed labor . . . . $. 34500 Other Overhead cost À $ $48000 Totalectual overhoved onerrored - $ 163500 Overhead applied := § 63525 (155 -.X $115500) Under applied Overhead = $ 97973 fer ne