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Help Save & Exit Submit Check my work B Required information [The following information applies to the questions displayed below.) of 4 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 $ oped $39,000 9,500 52,000 54,000 19,600 34,500 Book 178,000 100,000 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 Aint 8,000 23,000 100,000 1,900,000 Print rences 551 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. Prey 3 4 5 6 of 7 Next >

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Solution: Naming convention is not available, can be slightly different: Answers are highlighted in yellow: Raw Material Inventory (RM) Apr.30 $ 39,000 RM purchases 178000 155000 DM used $ 8,000 Indirect Materials Apr.30 DM used DL Used Overhead applied May.31 Work in Process Inventory (WIP) $ 9,500 155000 264250 Cost of goods Manuf. 77000 423501 $ 19,600 May.31 $ 54,000 Finished goods inventory (FG) Apr.30 $ 52,000 Cost of goods Manuf. 264250 281750 Cost of goods sold Indirect Materials Indirect Labor Other O/H cost Factory overhead $ 8,000 42350 Overhead applied $ 23,000 100000 May.31 $ 34,500 Underapplied OH $ 88,650 Answers: Cost of direct material used 155000 Income Statement (Partial) Sales Less: Cost of goods sold Gross Profit 1900000 281750 1618250 Cost of Direct Labor used (250000-57500) 77000 3) Cost of goods manufactured 264250 4) Cost of goods sold 281750 5) Gross Profit (without underapplied overhead) 1618250 Overapplied or underapplied overhead (refer MOH) 88650