Question

Required information Use the following information to answer questions 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 $ $ 37,000 9.200 69,000 43,000 18,000 34,900 174,000 150.000 Inventories Raw saterials 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 13,000 111,500 1,200,000 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 Taccounts 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 "Do not consider any underapplied or overapplied overhead Raw Materials (RM)

Answer 1

	Raw materials (RM)						Work in Process (WIP)
RM-April 30	37000					WIP-April 30	9200
RM purchases	174000					DM used	155000
		13000	Indirect materials			DL used	115500
		155000	DM used			Overhead applied	63525	325225	Cost of goods manuf.
RM-May 31	43000					WIP-May 31	18000
	Finished goods (FG)						Factory Overhead
FG-April 30	69000					Indirect materials	13000	63525	Overhead applied
Cost of goods manuf.	325225					Indirect labor	34500
		359325	Cost of goods sold			Other overhead costs	113500
FG-May 31	34900
						Underapplied OH	97475
Income Statement (Partial)
Sales	1200000
Cost of goods sold	359325
Gross Profit	840675