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	$	41,000			$	31,000
Work in process		9,500				18,600
Finished goods		57,000				33,700
Activities and information for May
Raw materials purchases (paid with cash)						193,000
Factory payroll (paid with cash)						250,000
Factory overhead
Indirect materials						11,000
Indirect labor						57,500
Other overhead costs						118,000
Sales (received in cash)						1,600,000
Predetermined overhead rate based on direct labor cost						55	%

Exercise 19-7 Cost flows in a job order costing system

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.

Exercise 19-8 Journal entries for materials

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

Prepare journal entries for the above transactions for the month of May.

Exercise 19-9 Journal entries for labor

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

Prepare journal entries for the above transactions for the month of May.

Exercise 19-10 Journal entries for overhead

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.

Raw Materials (RM) Work in Process (WIP) 0 Finished Goods (FG) Factory Overhead 0 0 Income statement (partial) $ 0