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[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
[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 | $ | 26,000 | $ | 56,000 | |||
Work in process | 9,700 | 20,700 | |||||
Finished goods | 62,000 | 33,500 | |||||
Activities and information for May | |||||||
Raw materials purchases (paid with cash) | 192,000 | ||||||
Factory payroll (paid with cash) | 250,000 | ||||||
Factory overhead | |||||||
Indirect materials | 15,000 | ||||||
Indirect labor | 57,500 | ||||||
Other overhead costs | 115,500 | ||||||
Sales (received in cash) | 1,300,000 | ||||||
Predetermined overhead rate based on direct labor cost | 55 | % | |||||
Compute the following amounts for the month of May using T-accounts.
- Cost of direct materials used.
- Cost of direct labor used.
- Cost of goods manufactured.
- Cost of goods sold.*
- Gross profit.
- Overapplied or underapplied overhead.
*Do not consider any underapplied or overapplied overhead.
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