Under factory overhead is 97,475 underapplied or overapplied? Required informati
ID: 2518362 • Letter: U
Question
Under factory overhead is 97,475 underapplied or overapplied?
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 $ $ 29,000 9,400 57,000 51,000 20,300 33, 700 Inventories Raw materials 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 171,000 150,000 9,000 34,500 117,500 1,600,000 55% 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 goods manufactured. 4. Cost of goods sold.* 5. Gross profit. 6. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead.Explanation / Answer
Solution:
Raw Materials Particulars Debit Particulars Credit To opening balance $29,000.00 By Factory overhead $9,000.00 To Cash $171,000.00 By WIP (DM Used) (1) $140,000.00 By balance C/f $51,000.00 Total $200,000.00 Total $200,000.00Related Questions
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