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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
- 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.
- Cost of direct materials used.
- Cost of direct labor used.
- Cost of goods manufactured.
- Cost of goods sold.*
- Gross profit.
- 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)Step by Step Solution
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