Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Help Save & Ch 2 The following information applies to the questions displayed be

ID: 2341836 • Letter: H

Question

Help Save & Ch 2 The following information applies to the questions displayed below The following information is available for Lock-Tte Company, which produces special-order security products and uses a job order costing system points Raw naterials Mork in process 18,200 21,380 goods 63,9935,600 Hint Print Reflerences Raw materials ourchases (paid with cash) Factory payroll (paid with cash) 345,000 Indirect naterials 15,009 80,608 120,880 ad costs Sales (received in cash) Predeters Compute the following amounts for the month of May using T-accounts 1. Cost of direct materials used 2. Cost of direct labor used 3. Cost of ooods manufactured O Type here to search

Explanation / Answer

Lock Tite Company

Cost of Goods Sold Statement

For the month ended May 31

Materials inventory at beginning

43000

Add: purchase of material

210000

Less: purchase return and allowances

0

Material available for use

253000

Less: material inventory at ending

52000

Less: indirect material

15000

Direct material consumed

186000

Direct labor (345000 factory payroll- 80000 indirect labor)

265000

Applied manufacture overhead (265000*70%)

185500

Total manufacture cost

636500

Add: work in process inventory at beginning

10200

Total cost to be accounted for

646700

Less: work in process inventory at ending

21300

Cost of goods manufactured

625400

Add: finished goods inventory

63000

Cost of goods available for sale

688400

Less: finished goods inventory

35600

Cost of goods sold unadjusted

652800

Add: under applied overhead

29500

Adjusted Cost of goods sold

682300

Raw material Inventory

Apr-30

43000

15000

Indirect material

Raw material purchase

210000

186000

Direct material

May-31

52000

Finished goods Inventory

Apr-30

63000

652800

Cost of goods sold (unadjusted)

Cost of goods manufactured

625400

May-31

35600

Work In progress Inventory

Apr-30

10200

Cost of goods manufactured

625400

Direct material used

186000

Direct labor used

265000

Overhead applied (265000*70%)

185500

May-31

21300

Factory overhead

Indirect material

15000

Overhead applied

185500

Indirect labour

80000

Other overhead

120000

Under applied overhead

29500

Lock Tite Company

Cost of Goods Sold Statement

For the month ended May 31

Materials inventory at beginning

43000

Add: purchase of material

210000

Less: purchase return and allowances

0

Material available for use

253000

Less: material inventory at ending

52000

Less: indirect material

15000

Direct material consumed

186000

Direct labor (345000 factory payroll- 80000 indirect labor)

265000

Applied manufacture overhead (265000*70%)

185500

Total manufacture cost

636500

Add: work in process inventory at beginning

10200

Total cost to be accounted for

646700

Less: work in process inventory at ending

21300

Cost of goods manufactured

625400

Add: finished goods inventory

63000

Cost of goods available for sale

688400

Less: finished goods inventory

35600

Cost of goods sold unadjusted

652800

Add: under applied overhead

29500

Adjusted Cost of goods sold

682300