Use the following information to answer questions

Skip to question

[The following information applies to the questions displayed below.]

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	$	48,000			$	53,000
Work in process		9,200				20,400
Finished goods		69,000				33,800
Activities and information for May
Raw materials purchases (paid with cash)						177,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						16,000
Indirect labor						46,000
Other overhead costs						105,000
Sales (received in cash)						1,200,000
Predetermined overhead rate based on direct labor cost						55	%

Exercise 19-7 Cost flows in a job order costing system LO P1, P2, P3, P4

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.

Use the following information to answer questions

Skip to question

[The following information applies to the questions displayed below.]

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	$	48,000			$	53,000
Work in process		9,200				20,400
Finished goods		69,000				33,800
Activities and information for May
Raw materials purchases (paid with cash)						177,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						16,000
Indirect labor						46,000
Other overhead costs						105,000
Sales (received in cash)						1,200,000
Predetermined overhead rate based on direct labor cost						55	%

Exercise 19-8 Journal entries for materials LO P1

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.

Use the following information to answer questions

Skip to question

[The following information applies to the questions displayed below.]

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	$	48,000			$	53,000
Work in process		9,200				20,400
Finished goods		69,000				33,800
Activities and information for May
Raw materials purchases (paid with cash)						177,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						16,000
Indirect labor						46,000
Other overhead costs						105,000
Sales (received in cash)						1,200,000
Predetermined overhead rate based on direct labor cost						55	%

Exercise 19-9 Journal entries for labor LO P2

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.