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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
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 | $ | 43,000 | $ | 52,000 | |||
Work in process | 10,200 | 21,300 | |||||
Finished goods | 63,000 | 35,600 | |||||
Activities and information for May | |||||||
Raw materials purchases (paid with cash) | 210,000 | ||||||
Factory payroll (paid with cash) | 345,000 | ||||||
Factory overhead | |||||||
Indirect materials | 15,000 | ||||||
Indirect labor | 80,000 | ||||||
Other overhead costs | 120,000 | ||||||
Sales (received in cash) | 1,400,000 | ||||||
Predetermined overhead rate based on direct labor cost | 70 | % | |||||
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. Raw Materials (RM) Work in Process (WIP) Finished Goods (FG) Factory Overhead 0 0
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