Follow the instructions to complete this exercise. Hint on how to begin: Complete the T account for Raw Materials; this includes Beginning Balance, Purchases, Indirect Materials requisitioned, and Direct Materials requisitioned. Hint: "Cost of Goods Manufactured" means the cost of goods completed and transferred from Work in Process to Finished Goods. Check figure: Cost of Goods Manufactured is $252,750. Check figure: Underapplied Factory Overhead is $105,150. Exercise 02-7 Cost flows in a job order costing system LO P1, P2, P3, P4 Use the following information to answer questions The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. Use the following information to answer questions The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. 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 labo 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. 64 Exercise 2-7 Cest flows in job order coating P1 P2 P3 P4 Chapter 2 J Order Cong and Analysi The following information is available for Lock-Tite Company, which produces special-order security products and uses a job oeder costing system Apr 30 May 31 Raw materials Work in process Frithed goods Activities and information for May Raw materials purchases (paid with cash Factory payroll paid with cash Factory overhead Indirect materia Indirect labor, Other overhead costs $43.000 10.200 $ 52,000 21.300 63.000 35,000 210,000 345,000 15.000 80,000 120,000 1,400,000 70% Sales (received in cash). Predetermined overhead rate hased an direct labor cost. Compute the following amounts for the month of May. 1. Cost of direct materials used. 2. Cost of direct labor used. Check $625,400 3. Cost of goods manufactured. Exercise 2-8 Journal entries for materials P1 Exercise 2-9 Journal entries for labor P2 Exercise 2-10 Journal entries for overhead P3 Exercise 2-11 Overhead rate: costs assigned to jobs P3 Check (2) $22,710 4. Cost of goods sold. Do not comider any underplied or lind d 5. Gross profit. 6. Overapplied or underapplied overhead. Use information in Exercise 2-7 to prepare journal entries for the following events for the month of May. 1. Raw materials purchases for cash. 3. Indirect materials usage. 2. Direct materials usage. Use information in Exercise 2-7 to prepare journal entries for the following events for the month of May. 1. Direct labor usage 3. Total payroll paid in cash. 2. Indirect labor age Use information in Exercise 2-7 vo propere journal entries for the following events for the month of May. 1. Incurred other overhead costs (recond credit to Other Accounts). 2. Applied overhead to work in process. Shire Computer's predetermined overbead rate is based on direct labor cost. Management estimates the company will incur $747,500 of overhead costs and $575,000 of direct labor cost for the year. During March, Shire began and completed Job 13-56. 1. What is the predetermined overhead rate for the year? 2. Use the information on the following job cost sheet to determine the total cost of the job. JOB COST SHEET Customer's Name Keiser Co. Job Description 5 plasma monitors-61 inch Job No. 13-56 Overhead Direct Materials Date Requisition No. Amount Direct Labor Time-Ticket No. Costs Applied Amount Rate Amount Mar 4-129 $5,000 T-306 $700 Mar. 11 4-142 7.020 T-432 1,250 Mar 18 4-167 3,330 T-456 1,250 Totals