ccounting Final 12 g Fiday- Chnstophar Bartulom Chapher 19 Job Order Costing 827
ID: 2582666 • Letter: C
Question
ccounting Final 12 g Fiday- Chnstophar Bartulom Chapher 19 Job Order Costing 827 The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system Cost flows in a job order costing system PI P2 P3 PA April 30 May 31 Raw materials work in process Finished goods $43.000 s 52.000 21,300 35.600 10.200 63,000 . . . . Activities and information for May Raw materials purchases (paid with cash) .. Factory payroll (paid with cash) 210,000 345,000 Factory overhead Indirect materials. Indirect labor Other overhead costs. 1,400,000 Sales (received in cash) 70% Compute the following amounts for the month of May 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. Exercih Journal entries for aare ournal entries for the following events for the month of May.Explanation / Answer
Answer:
Compute the following amounts for the month of May using T-accounts.
1. Cost of direct materials used.
Raw Materials (RM)
RM - April 30
43,000
RM purchases
210,000
15,000
Indirect materials
186,000
DM used
RM- May 31
52,000
2. Cost of direct labor used.
Factory Payroll
Factory payroll
345,000
80,000
Indirect labor
265,000
DL used
0
3. Cost of goods manufactured.
Finished Goods (FG)
FG - April 30
63,000
Cost of goods manuf.
625,400
652,800
Cost of goods sold
FG - May 31
35,600
4. Cost of goods sold.
Goods in Process (GIP)
GIP - April 30
10,200
DM used
186,000
DL used
265,000
Overhead applied
185,500
625,400
Cost of goods manuf.
GIP - May 31
21,300
5. Gross profit.
Income statement (partial)
Sales
$1,400,000
Cost of goods sold
652,800
Gross profit
$747,200
6. Overapplied or underapplied overhead.
Factory Overhead
Indirect materials
15,000
Indirect labor
80,000
Other overhead costs
120,000
185,500
Overhead applied
Underapplied OH
29,500
Raw Materials (RM)
RM - April 30
43,000
RM purchases
210,000
15,000
Indirect materials
186,000
DM used
RM- May 31
52,000
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