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 $ $38,000 9,500 54,000 58,000 18,700 33,600 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 coats Sales (received in cash) Predetermined overhead rate based on direct labor cost 182,000 250,000 9,000 57,500 114,000 1,100,000 550 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.

Answer 1

Raw Materials					Work in process
RM-April 30	38,000				WIP-April30	9,500
purchases	182,000				DM used	153,000
		9,000	ind materials		DL used	192,500	442,175	cost of goods mfg
		153,000	DM used		OH applied	105875
RM-May 31	58,000				WIP-may 31	18,700
Facotry payroll					finished goods
Factory	250,000				Fg-april 30	54,000
payroll		57,500	ind labor		Cost of	442,175	462,575	COGS
		192,500	DL used		goods mfg
					end bal	33,600
Factory overhead
ind materials	9,000	105,875	OH applied
ind labor	57,500
other oh costs	114,000
underapp	74,625
income Statement(partial)
Sales			1,100,000
cost of goods sold			462,575
Gross profit			637,425

1	cost of direct materials used			153,000
2	cost of direct labor used			192,500
3	cost of goods manufactued			442,175
4	cost of goods sold			462,575
5	Gross profit			637,425
6	overapplied or underapplied oh			74,625

Trasan	General journal				Debit	Credit
1	Raw materials inventory				182,000
	cash					182,000
2	Work in process inventory				153,000
	Raw materials invnetory					153,000
3	Factory overhead				9,000
	Raw materials inventory					9,000