Required information [The following information applies to the questions display

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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 Work in process Finished goods $49, 000 9,300 54,000 $49, 000 18,300 34, 600 Activities and information for May Raw materials purchases (paid with cash) Factory payrol1 (paid with cash) Factory overhead 172,000 150,000 Indirect materials Indirect labor Other overhead costs 10, 000 34, 500 99, 500 1,200, 000 Sales (received in cash) Predetermined overhead rate based on direct labor cost 55% Compute the following amounts for the month of May using T-accounts. 1. Cost of direct materlals 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) Work in Process (WIP) 49,000 172,000 April 30 April 30 9.300 62.000 115,500 80,850 18.300 ndirect materials purchases used M used 0,000 Indirect materials used 349,350 Cost of goods manuf 16,200 DM used Overhead applied 194,800 Finished Goods (FG) Factory Overhead 54,000 10,000 34.500 99,500 April 30 80,850Overhead applied ndirect materials Indirect labor Other overhead costs Cost of goods manuf 34,600 349,350 Cost of goods sold 260,750 erapplied OH 63.150 Income statement (partial) Sales Cost of goods sold Gross profit $ 1,200,000 260,750 $939,250

Explanation / Answer

Raw Materials Work in process RM-April 30 49,000 WIP-April30 9,300 purchases 172,000 DM used 162,000 10,000 ind materials DL used 115,500 332,025 cost of goods mfg 162,000 DM used OH applied 63525 RM-May 31 49,000 WIP-may 31 18,300 Facotry payroll finished goods Factory 150,000 Fg-april 30 54,000 payroll 34,500 ind labor Cost of 332,025 351,425 COGS 115,500 DL used goods mfg end bal 34,600 Factory overhead ind materials 10,000 63,525 OH applied ind labor 34,500 other oh costs 99,500 underapp 80,475 income Statement(partial) Sales 1,400,000 cost of goods sold 351,425 Gross profit 1,048,575 1 cost of direct materials used 162,000 2 cost of direct labor used 115,500 3 cost of goods manufactued 332,025 4 cost of goods sold 351,425 5 Gross profit 1,048,575 6 overapplied or underapplied oh 80,475 Trasan General journal Debit Credit 1 Raw materials inventory 172,000 cash 172,000 2 Work in process inventory 162,000 Raw materials invnetory 162,000 3 Factory overhead 10,000 Raw materials inventory 10,000 Trasan General journal Debit Credit 1 Work in process inventory 115,500 Factory wages payable 115,500 2 Factory overhead 34,500 Factory wages payable 34,500 3 Factory wages payable 150,000 cash 150,000 Trasan General journal Debit Credit 1 Factory overhead 99,500 other accounts 99,500 Work in process inventory 63,525 Factory overhead 63,525

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