Question
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
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 | $ | 27,000 |
|
| $ | 51,000 |
|
Work in process |
| 9,400 |
|
|
| 19,000 |
|
Finished goods |
| 67,000 |
|
|
| 34,800 |
|
Activities and information for May |
|
|
|
|
|
|
|
Raw materials purchases (paid with cash) |
|
|
|
|
| 184,000 |
|
Factory payroll (paid with cash) |
|
|
|
|
| 300,000 |
|
Factory overhead |
|
|
|
|
|
|
|
Indirect materials |
|
|
|
|
| 12,000 |
|
Indirect labor |
|
|
|
|
| 69,000 |
|
Other overhead costs |
|
|
|
|
| 118,000 |
|
Sales (received in cash) |
|
|
|
|
| 1,000,000 |
|
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started