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 $ $33,000 9,000 70,000 49,000 19,400 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 196,000 150,000 17,000 34,500 101,500 1,500,000 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. Work in Process (WIP) Raw Materials (RM) 33,000 17,000 Indirect materials 196,000 DM used 9,000 April 30 RM purchases Cost of goods manuf. April 30 DM used DL used Overhead applied May 31 May 31 212,000 9,000 Finished Goods (FG) 70,000 Cost of goods sold Indirect materials Overhead applied April 30 Cost of goods manuf. Indirect labor Factory Overhead 17,000 34,500 101,500 Other overhead costs May 31 70,000 Underapplied OH 153,000 Income statement (partial) Sales $ 1,500,000 Cost of goods sold Gross profit $ 1,500,000 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 View journal entry worksheet No Transaction General Journal Debit 196,000 Debit Credit Raw materials inventory Cash 196,000 Work in process inventory Raw materials inventory 17,000 Factory overhead Raw materials inventory 17,000 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. View transaction list View journal entry worksheet No Transaction Debit Credit General Journal Work in process inventory Factory wages payable 12 34,500 Factory overhead Factory wages payable 34,500 3 3 Factory wages payable Cash 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. View transaction list View journal entry worksheet No Transaction General Journal Credit Debit 101,500 Factory overhead Other accounts 101,500 Work in process inventory Factory overhead
