Question

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 $ $28,000 9,400 67.000 55,000 19,200 34,200 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 195,000 250,000 17,000 57,500 113,000 1,700,000 55%

Answer 1

1	cost of direct materials used			151,000
2	cost of direct labor used			192,500
3	cost of goods manufactued			439,575
4	cost of goods sold			472,375
5	Gross profit			1,227,625
6	overapplied or underapplied oh			51,625

Raw Materials					Work in process
RM-April 30	28,000				WIP-April30	9,400
purchases	195,000				DM used	151,000
		17,000	ind materials		DL used	192,500	439,575	cost of goods mfg
		151,000	DM used		OH applied	105875
RM-May 31	55,000				WIP-may 31	19,200
Facotry payroll					finished goods
Factory	250,000				Fg-april 30	67,000
payroll		57,500	ind labor		Cost of	439,575	472,375	COGS
		192,500	DL used		goods mfg
					end bal	34,200
Factory overhead
ind materials	10,000	105,875	OH applied
ind labor	34,500
other oh costs	113,000
underapp	51,625
income Statement(partial)
Sales			1,700,000
cost of goods sold			472,375
Gross profit			1,227,625