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Please help! Explain how you solved for DM used and DL used! Thank you. Compute the following amounts for the month of May using T-accounts.
Please help! Explain how you solved for DM used and DL used! Thank you.
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.
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 $ $37,000 9,400 67,000 39,000 19,700 33,700 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 175,000 200,000 7,000 46,000 104,500 1,300,000 558 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) April 30 Raw Materials (RM) 37,000 175,000 7,000 Indirect materials April 30 RM purchases DM used DM used DL used Overhead applied Cost of goods manuf. May 31 205,000 May 31 0 Finished Goods (FG) Inventory Factory Overhead 7,000 April 30 Indirect materials Overhead applied Cost of goods manuf. Indirect labor 46,000 Cost of goods sold Other overhead costs 104,500 May 31 0 Underapplied OH 157,500 Income statement (partial) $ 0
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