April 30 May 31 $ 49,000 $ 26,000 10,000 53,000 19,800 34,600 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 180,000 250,000 15,000 57,500 93,500 1,100,000 55% Exercise 15-7 Cost flows in a job order costing system LO P1, P2, P3, P4 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. Work in Process (WIP) Raw Materials (RM) 26,000 15,000 Indirect materials 180,000 DM used 10,000 Cost of goods manuf. April 30 RM purchases April 30 DM used DL used Overhead applied May 31 May 31 191,000 10,000 Finished Goods (FG) Inventory April 30 53,000 Cost of goods sold Cost of goods manuf. Factory Overhead 15,000 Indirect materials Overhead applied Indirect labor 57,500 Other overhead costs 93,500 May 31 53,000 Underapplied OH 166,000 Income statement (partial) Sales $ 1,100,000 Cost of goods sold Gross profit $ 1,100,000