Question
Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which
Use the following information to answer questions
[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 | $ | 28,000 | $ | 40,000 | |||
Work in process | 10,000 | 18,400 | |||||
Finished goods | 54,000 | 34,300 | |||||
Activities and information for May | |||||||
Raw materials purchases (paid with cash) | 181,000 | ||||||
Factory payroll (paid with cash) | 150,000 | ||||||
Factory overhead | |||||||
Indirect materials | 13,000 | ||||||
Indirect labor | 34,500 | ||||||
Other overhead costs | 106,000 | ||||||
Sales (received in cash) | 1,300,000 | ||||||
Predetermined overhead rate based on direct labor cost | 55 | % | |||||
Exercise 15-7 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.
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.
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