Question

Required information 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 $ 45,000 $ 41,000 Work in process 9,200 19,700 Finished goods 61,000 33,900 Activities and information for May Raw materials purchases (paid with cash) 170,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 17,000 Indirect labor 46,000 Other overhead costs 103,000 Sales (received in cash) 1,400,000 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.

Answer 1

1	cost of direct materials used			157,000
2	cost of direct labor used			154,000
3	cost of goods manufactued			385,200
4	cost of goods sold			412,300
5	Gross profit			987,700
6	overapplied or underapplied oh			81,300

Raw Materials					Work in process
RM-April 30	45,000				WIP-April30	9,200
purchases	170,000				DM used	157,000
		17,000	ind materials		DL used	154,000	385,200	cost of goods mfg
		157,000	DM used		OH applied	84700
RM-May 31	41,000				WIP-may 31	19,700
Facotry payroll					finished goods
Factory	200,000				Fg-april 30	61,000
payroll		46,000	ind labor		Cost of	385,200	412,300	COGS
		154,000	DL used		goods mfg
					end bal	33,900
Factory overhead
ind materials	17,000	84,700	OH applied
ind labor	46,000
other oh costs	103,000
underapp	81,300
income Statement(partial)
Sales			1,400,000
cost of goods sold			412,300
Gross profit			987,700