Help Save & Ch 2 The following information applies to the questions displayed be
ID: 2341836 • Letter: H
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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 searchExplanation / 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
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