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	$	42,000			$	44,000
Work in process		9,400				18,400
Finished goods		59,000				33,200
Activities and information for May
Raw materials purchases (paid with cash)						191,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						17,000
Indirect labor						46,000
Other overhead costs						91,000
Sales (received in cash)						1,900,000
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.

Raw Materials (RM)					Work in Process (WIP)
Beginning Balance	42,000	17,000	Indirect materials		Beginning Balance	9,400		Cost of goods manuf.
RM purchases	191,000	172,000	DM used		DM used	172,000
					DL used	154,000
					Overhead applied
Ending balance	44,000				Ending balance	335,400
Finished Goods (FG)					Factory Overhead
Beginning Balance	59,000				Indirect materials			Overhead applied
Cost of goods manuf.					Indirect labor
					Other overhead costs
Ending balance	59,000
					Underapplied OH

Income statement (partial)

Sales

Cost of goods sold

Gross profit