Question

The following 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 $33,000 $ 54,000 Work in process 9,400 18, 200 Finished goods 53,000 33, 400 Activities and information for May Raw materials purchases (paid with cash) 176,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 7,000 Indirect labor 34,500 Other overhead costs 117,500 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 555

Answer 1

	Raw Materials
Apr-30	$ 33,000	$ 7,000	Indirect Materials
RM Purchases	$ 176,000	$ 148,000	DM Used
RM May 31	$ 54,000
	Factory Payroll
Factory Payroll	$ 150,000
		$ 34,500	Indirect Labor
		$ 115,500	DL Used ( $ 150,000 (-) $ 34,500)
	Factory Overhead
Indirect Materials	$ 7,000	$ 63,525	Overhead Applied ($ 115,500 x 55% )
Indirect Labor	$ 34,500
Other Overhead costs	$ 117,500
Underapplied OH	$ 95,475
	Work in Process(WIP)
Apr-30	$ 9,400
DM Used	$ 148,000
DL Used	$ 115,500	$ 318,225	Cost of Goods Manufactured ( Bal. Fig.)
Overhead Applied ($ 115,500 x 55% )	$ 63,525
May-31	$ 18,200
	Finished Goods
Apr-30	$ 53,000
Cost of Goods Manufactured	$ 318,225	$ 337,825	Cost of Goods Sold ( Bal. Fig.)
May-31	$ 33,400

Income Statement(Partial)
Sales	$ 1,400,000
Less: Cost of Goods Sold	($ 337,825)
Gross Profit	$ 1,062,175