Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $ 25,000 $ 47,000
Work in process 9,500 20,600
Finished goods 60,000 33,300
Activities and information for May
Raw materials purchases (paid with cash) 182,000
Factory payroll (paid with cash) 300,000
Factory overhead
Indirect materials 9,000
Indirect labor 69,000
Other overhead costs 109,500
Sales (received in cash) 1,700,000
Predetermined overhead rate based on direct labor cost 55 %

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.

image text in transcribed

Work in Process (WIP) April 30 RM purchases Raw Materials (RM) 25,000 182,000 9.000 Indirect materials EDM used 198,000 May 31 Finished Goods (FG) Inventory Factory Overhead April 30 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

4th Edition

0132423502, 978-0132423502

Students also viewed these Accounting questions

Question

=+5. How would you rewrite the copy to make it more effective?

Answered: 1 week ago