Required information

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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	$	27,000			$	30,000
Work in process		9,400				18,300
Finished goods		64,000				33,200
Activities and information for May
Raw materials purchases (paid with cash)						175,000
Factory payroll (paid with cash)						300,000
Factory overhead
Indirect materials						11,000
Indirect labor						69,000
Other overhead costs						108,000
Sales (received in cash)						1,600,000
Predetermined overhead rate based on direct labor cost						55	%

Exercise 19-7 Cost flows in a job order costing system LO P1, P2, P3, P4

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.

Required information Raw Materials (RM) 27,000 11,000 indirect materials 175.000 161,000 DM used Work in Process (WIP) 9,400 April 30 RM purchases April 30 IDM used DL used Overhead applied Cost of goods manuf. May 31 30,000 May 31 9,400 Finished Goods (FG) Factory Overhead 0 0 Income statement (partial) $ 0