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

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 $ 48,000 $ 48,000 Work in process 9,900 19,700 Finished goods 67,000 33,700 Activities and information for May Raw materials purchases (paid with cash) 194,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 14,000 Indirect labor 34,500 Other overhead costs 116,000 Sales (received in cash) 1,100,000 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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RAW MATERIAL INVENTORY
May 1 balance 48,000 Work in Process 180,000
Cash 194,000 (material used)
Manufacturing overheads 14000
May 31 Balance 48,000
MANUFACTURING OVERHEADS
Raw material Inv. 14,000 Work in Process 63,525
Wages 34,500 (115500*55%)
Cash 116,000
balance 100,975
WAGES PAYABLE
Cash Account 150,000 Manufacturing overheads 34,500
Work in process 115,500
(Direct labouor cost)
balance Nil
WORK IN PROCESS
may1 balance 9,900 Finished Goods 349,225
Raw material 180,000 (cost of goods manufactured)
Wages payable 115,500
Manufacturing overheads 63,525
balance 19,700
FINISHED GOODS INVENTORY
May 1 Balance 67,000 Cost of Goods sold 382,525
work in process 349,225
balance 33,700
Req 1: Cost off direct material used: $ 180,000
Req 2: Cost of direct labour cost: $ 115,500
Req3: Cost of goods manufactured: $ 349,225
Req 4: Cost of goods sold: $ 382,525
Req 5: Gross profit = Sales - Cost of Goods sold
$ 1100,000 - $ 382,525 = $ 717,475
Req 6: Under Applied overheads : $ 100,975 (as debit balance in Overheads account)

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