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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	$	30,000			$	32,000
Work in process		9,400				20,300
Finished goods		60,000				34,600
Activities and information for May
Raw materials purchases (paid with cash)						190,000
Factory payroll (paid with cash)						250,000
Factory overhead
Indirect materials						16,000
Indirect labor						57,500
Other overhead costs						115,500
Sales (received in cash)						1,800,000
Predetermined overhead rate based on direct labor cost						55	%

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.

1. Raw materials purchases for cash.
2. Direct materials usage.
3. Indirect materials usage.

1. Direct labor usage.
2. Indirect labor usage.
3. Total payroll paid in 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.