Required information Use the following information to answer questions [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 $33,000 S 57,000 19,500 Work in process Finished goods 9,500 58,000 34,700 Activities and information for May 178,000 Raw materials purchases (paid with cash) Factory payroll (paid with cash) 100,000 Factory overhead Indirect materials 8,000 Indirect labor 23,000 90,000 Other overhead costs Sales (received in cash). 2,000,000 55% Predetermined overhead rate based on direct labor cost Exercise 15-7 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. Raw Materials (RM) April 30 33,000 8,000 Indirect materials RM purchases 178,000 Pred April 30 DM used the ind Work in Process (WIP) 9,500 Cost of goods manuf other overhead costs Sales (received in cash) i 90,000 2,000,000. 55% Predetermined overhead rate based on direct labor cost Exercise 15-7 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. Raw Materials (RM) April 30 33,000 8,000 Indirect materials RM purchases 178,000 DM used May 31 203,000 Finished Goods (FG) Inventory April 30 58,000 Cost of goods manuf May 31 58,000 Cost of goods sold April 30 DM used DL used Overhead applied May 31 Indirect materials Indirect labor Other overhead costs Underapplied OH Work in Process (WIP) 9,500 9,500 Factory Overhead 0 Cost of goods manuf Overhead applied Required Information 4. Cost of goods sold." 5. Gross profit. 6. Overapplied or underapplied overhead. *Do not consider any underapplied or overapplied overhead. Raw Materials (RM) April 30 33,000 8,000 Indirect materials RM purchases 178,000 OM used May 31 203,000 Finished Goods (FG) Inventory 58,000 April 30 Cost of goods manuf... May 31 58,000 Income statement (partial) $ Sales Cost of goods sold Gross profit 0 Cost of goods sold April 30 DM used DL used Overhead applied May 31 Indirect materials Indirect labor Other overhead costs Underapplied OH Work in Process (WIP) 9,500 9,500 Factory Overhead Cost of goods manuf Overhead applied
