Question

Chapter 15 Job Order Costing and Analysis 693 following information is available for Lock-Tite Company, which produces special-order security ucts and uses a job order costing system. Exercise 15-7 Cost flows in a job order costing system P1 P2 P3 P4 April 30 May 31 Inventories Raw materials. Work in process Finished goods $43,000 52,000 10,200 21,300 63,000 35,600 . Activities and information for May Raw materials purchases (paid with cash) ···· Factory payroll (paid with cash) Factory overhead 210,000 345,000 Indirect materials Indirect labor... 15,000 80,000 20,000 1,400,000 Sales (recelved in cash) Predetermined overhead rate based on direct labor cost 70% ompute the following amounts for the month of May. Cost of direct materials used. 4. Cost of goods sold.* 5. Gross profit. 6. Overapplied or underapplied overhead. Do mot consider any underapplied or overapplied ovechead. 2 Cost of direct labor used. Cost of goods manufactured. Check (3) $825,400 se information in Exercise 15-7 to prepare journal entries for the following events for the month of May. Raw materials purchases for cash. 2. Direct materials usage. Exercise 15-8 Journal entries for materials P1 3. Indirect materials usage. Use information in Exercise 15-7 to prepare journal entries for the following events for the month of May. Exercise 15.9 Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash. Journal entries for labor P2 Use information in Exercise 15-7 to prepare journal entries for the following events for the month of May. Exercise 15-10 Journal entries for overhead P3 Incurred other overhead costs (record credit to Other Accounts). 2: Application of overhead to work in process. efer to information in Exercise 15-7. Prepare the journal entry to allocate (close) overapplied or underap- Exercise 15-11 lied overhead to Cost of Goods Sold. Adjusting factory overhead P4

Answer 1

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