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	$	46,000			$	55,000
Work in process		9,000				19,600
Finished goods		62,000				33,300
Activities and information for May
Raw materials purchases (paid with cash)						183,000
Factory payroll (paid with cash)						250,000
Factory overhead
Indirect materials						11,000
Indirect labor						57,500
Other overhead costs						116,000
Sales (received in cash)						1,900,000
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)					Work in Process (WIP)
April 30	46,000	11,000	Indirect materials		April 30	9,000		Cost of goods manuf.
RM purchases	183,000		DM used		DM used
					DL used
					Overhead applied
May 31	218,000				May 31	9,000
Finished Goods (FG) Inventory					Factory Overhead
April 30	62,000		Cost of goods sold		Indirect materials	11,000		Overhead applied
Cost of goods manuf.					Indirect labor	57,500
					Other overhead costs	116,000
May 31	62,000
					Underapplied OH	184,500

Income statement (partial)
Sales	$1,900,000
Cost of goods sold
Gross profit	$1,900,000