Question

ndix D & Chapters 1-3 Saved Help 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 Inventories Raw materials $36,000 $ 48,000 Work in process 9,000 18,800 Finished goods 60,000 33, 100 Activities and information for May Raw materials purchases paid with cash) 194,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 14,000 Indirect labor 46,000 Other overhead costs 93,000 Sales (received in cash) 1,300,000 Predetermined overhead rate based on direct labor cost 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 (RM)
RM - April 30	36,000
RM purchases	194,000
		14,000	Indirect materials
		168,000	DM used
RM- May 31	48,000
Direct Labor
Factory payroll	200,000
		46,000	Indirect labor
		154,000	DL used
	-
Factory Overhead
Indirect materials	14,000
Indirect labor	46,000
Other overhead costs	93,000
		84,700	Overhead applied
Underapplied OH	68,300
Work in Process (WIP)
GIP - April 30	9,000
DM used	168,000
DL used	154,000
Overhead applied	84,700	396,900	Cost of goods manufactured
GIP - May 31	18,800
Finished Goods (FG)
FG - April 30	60,000
Cost of goods manuf.	396,900
		423,800	Cost of goods sold
FG - May 31	33,100
Income statement (partial)
Sales	1,300,000
Cost of goods sold	423,800
Gross profit	876,200