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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.
- 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.
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 0Step by Step Solution
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