Question

Use the following information to answer questions 7-11

***Questions 15-7, 15-8, 15-9, 15-10, 15-11 are the questions, 7-11***

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

7. Exercise 15-7 Cost flows in a job order costing system LO P1, P2, P3, P4

Compute the following amounts for the month of May using T-accounts.

- Cost of direct material used.

- Cost of direct labor used.

- Cost of goods manufactured.

- Cost of goods sold.

- Gross Product.

- Overapplied or underapplied or overapplied overhead.

8. Exercise 15-8 Journal entries for labor LO P1

- Raw materials purchases for cash.

- Direct material usage.

- Indirect material usage.

Prepare journal entries for the above transaction for the month of May.

9. Exercise 15-9 Journal entries for labor LO P2

10. Exercise 15-10 Journal entries for labor LO P3

11. Exercise 15-11 Adjusting factory overhead LO P4

Answer 1

RAW MATERIAL FACTORY PAYROLL FACTORY OVERHEAD PARTICULERS RM-April 30 RM Purchases AMOUNT AMOUNT İPARTICULER5 PARTICULERS AMOUNT AMOUNT PARTICULERS PARTICULERS Indirect Materials Indirect Labor Other Overhead cost AMOUNT AMOUNT İPARTICULERS 43000 15000 Inddirect Materials 210000 186000 DM used Factory Payroll 345000 80000 Indirect Labor 15,0001,85,500 Overhead Applied 80,000 265000 DL Used 1,20,000 RM-May 31 52000 29,500 WORK IN PROCESS(WIP) FINISHED GOODS PARTICULERS WIP-Apr 30 DM used DL used Overapplied AMOUNT AMOUNT İPARTICULERS PARTICULERS FG-April 30 Cost of Goods Manufactured AMOUNT AMOUNT PARTICULERS 10200 186000 265000 185500 21300 625400 Cost of Goods Manufactured 652800 Cost of Goods Sold Finished Goods -May 31 35600 INCOME STATEMENT (Partial Sales Less: Cost of Goods Sold Gross Profit 14,00,000 -6,52,B00 7,47,200

Working: 1 Cost of direct materials used: 4. Cost of Goods Sold Beginning RM Inventory Add: Purchase Raw Material Available Less: Ending RM Inventory Total RM Used Less: Indirect Material used: Cost of direct materials used: 43,000 2,10,000 2,53,000 52,000 2,01,000 15,000 1,86,000 Beginning Finished Goods Inventory Add: Cost of Goods Manufactured Less: Ending Finished goods Inventory Cost of Goods Sold 63,000 6,25,400 35,600 6,52,800 5. Overapplied or underapplied overhead: Indirect Material Indirect Labor Other Overhead Cost Total Actual Overhead Incurred Overhead Applied Underapplied Overhead 15,000 80,000 1,20,000 2,15,000 1,85,500 29,500 2. Cost of direct labor used: Total Factory Paroll Less: Indirect Labor Cost of Direct Labor Used 3,45,000 80,000 2,65,000 3. Cost of Goods Manufactured: Beginning WIP Inventory Add: Direct Material Add: Direct Labor Add: Overhead Applied(70%) Total cost of Goods in process Less: Ending WIP Inventory Cost of Goods Manufactured 10,200 1,86,000 2,65,000 1,85,500 6,46,700 21,300 6,25,400