Question

the following information is available for lock-tire company, which produces special-order security products and uses a job order costing system

Saved 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. $ 540,000 9.900 66.000 32.000 20,600 35,000 191.000 250.000 Raw materials Work in process Finished goods hetivities 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 7.000 57.500 107.500 1.100.000 550 Compute the following amounts for the month of May using T-accounts 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. - 100.000 3 4 5 6 7 8 Next >

Answer 1

	Raw materials (RM)						Work in Process (WIP)
RM-April 30	40000					WIP-April 30	9900
RM purchases	191000					DM used	192000
		7000	Indirect materials			DL used	192500
		192000	DM used			Overhead applied	105875	479675	Cost of goods manuf.
RM-May 31	32000					WIP-May 31	20600
	Finished goods (FG)						Factory Overhead
FG-April 30	64000					Indirect materials	7000	105875	Overhead applied
Cost of goods manuf.	479675					Indirect labor	57500
		508675	Cost of goods sold			Other overhead costs	107500
FG-May 31	35000
						Underapplied OH	66125
Income Statement (Partial)
Sales	1100000
Cost of goods sold	508675
Gross Profit	591325