Required information

PART ONE:

[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	$	37,000			$	54,000
Work in process		9,900				19,200
Finished goods		66,000				34,500
Activities and information for May
Raw materials purchases (paid with cash)						186,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						18,000
Indirect labor						46,000
Other overhead costs						119,000
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.

PART TWO:

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	$	37,000			$	54,000
Work in process		9,900				19,200
Finished goods		66,000				34,500
Activities and information for May
Raw materials purchases (paid with cash)						186,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						18,000
Indirect labor						46,000
Other overhead costs						119,000
Sales (received in cash)						1,700,000
Predetermined overhead rate based on direct labor cost						55	%

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.

PART THREE:

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	$	37,000			$	54,000
Work in process		9,900				19,200
Finished goods		66,000				34,500
Activities and information for May
Raw materials purchases (paid with cash)						186,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						18,000
Indirect labor						46,000
Other overhead costs						119,000
Sales (received in cash)						1,700,000
Predetermined overhead rate based on direct labor cost						55	%

1. Direct labor usage.

2. Indirect labor usage.

3. Total payroll paid in cash.

Prepare journal entries for the above transactions for the month of May.

PART FOUR;

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	$	37,000			$	54,000
Work in process		9,900				19,200
Finished goods		66,000				34,500
Activities and information for May
Raw materials purchases (paid with cash)						186,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						18,000
Indirect labor						46,000
Other overhead costs						119,000
Sales (received in cash)						1,700,000
Predetermined overhead rate based on direct labor cost						55	%

1. Incurred other overhead costs (record credit to Other Accounts).

2. Application of overhead to work in process.

Prepare journal entries for the above transactions for the month of May.