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 Inventories Raw materials $ 28,888 $ 44,000 work in process 9,800 19,600 Finished goods 60,000 34,000 Activities and information for May Raw materials purchases (paid with cash) 197,000 Factory payroll (paid with cash) 100,000 Factory overhead Indirect materials 7,880 Indirect labor 23,800 other overhead costs 119,500 Sales (received in cash) 1,700,000 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) 28,000 7,000 Indirect materials 197,000 21,000 DM used Work in Process (WIP) 9,800 April 30 April 30 Cost of goods manuf. RM purchases DM used DL used Overhead applied May 31 197,000 9,800 Finished Goods (FG) Inventory Factory Overhead 0 1. Raw materials purchases for cash. 2. Direct materials usage. 3. Indirect materials usage. Prepare Journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet Record other factory overhead costs (excluding indirect materials and indirect labor). Record credit to Other Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 1. Incurred other overhead costs (record credit to Other Accounts). 2. Applied overhead to work in process. Prepare journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet Record the application of overhead to work in process. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal