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. May 31 $ 40,000 20,700 33,000 April 30 Inventories Raw materials $32,000 Work in process 9,500 Finished goods 60,000 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 194,000 200,000 15,000 46,000 113,000 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) April 30 RM purchases Raw Materials (RM) 32,000 15,000 Indirect materials 194,000 171,000 DM used April 30 DM used DL used Overhead applied May 31 40,000 May 31 Finished Goods (FG) Inventory Factory Overhead April 30 Factory payroll Cost of goods manuf. 0 0 Income statement (partial) $ 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 A > Record raw material purchases for cash. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry View general journal Clear entry 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 the entry to assign direct materials to jobs. Note: Enter debits before credits. General Journal Debit Credit Transaction 2 Record entry View general journal Clear entry 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 the entry to assign indirect materials to jobs. Note: Enter debits before credits. General Journal Debit Credit Transaction 3 Record entry View general journal Clear entry 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 Journal entry worksheet A B > Record the entry for direct labor usage. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry View general journal Clear entry 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 Journal entry worksheet Record the entry for indirect labor usage. Note: Enter debits before credits. Transaction General Journal 2 Debit Credit Record entry View general journal Clear entry 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 Journal entry worksheet
