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 $ $43,000 9,480 64,000 43,000 20,5ee 34,500 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 184, eee 300,000 8, eee 69, eee 95,500 1,400,000 555 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

1	cost of direct materials used			176,000
2	cost of direct labor used			231,000
3	cost of goods manufactued			522,950
4	cost of goods sold			552,450
5	Gross profit			847,550
6	overapplied or underapplied oh			45,450

Raw Materials					Work in process
RM-April 30	43,000				WIP-April30	9,400
purchases	184,000				DM used	176,000
		8,000	ind materials		DL used	231,000	522,950	cost of goods mfg
		176,000	DM used		OH applied	127050
RM-May 31	43,000				WIP-may 31	20,500
Facotry payroll					finished goods
Factory	300,000				Fg-april 30	64,000
payroll		69,000	ind labor		Cost of	522,950	552,450	COGS
		231,000	DL used		goods mfg
					end bal	34,500
Factory overhead
ind materials	8,000	127,050	OH applied
ind labor	69,000
other oh costs	95,500
underapp	45,450
income Statement(partial)
Sales			1,400,000
cost of goods sold			552,450
Gross profit			847,550