• Entries Cost of goods manuf.
• Cost of goods sold
• DL used
• DM used
• Factory payroll
• Gross profit
• Indirect labor
• Indirect materials
• Other overhead costs
• Overhead applied
• RM purchases
• Sales
• April 30
• May 31

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
Inventories
Raw materials	$	43,000			$	51,000
Work in process		9,300				18,800
Finished goods		70,000				35,000
Activities and information for May
Raw materials purchases (paid with cash)						188,000
Factory payroll (paid with cash)						150,000
Factory overhead
Indirect materials						16,000
Indirect labor						34,500
Other overhead costs						111,500
Sales (received in cash)						1,600,000
Predetermined overhead rate based on direct labor cost						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.

Raw Materials (RM) Work in Process (WIP) Finished Goods (FG) Inventory Factory Overhead Income statement (partial)