Question

Required information [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 job order costing system. April 30 May 31 $ $32,000 9,000 56,000 42,000 20,100 33,700 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 171,000 200,000 12,000 46,000 115. See 1,900,000 55% mpute the following amounts for the month of May using T-accounts. 4 2 3 PM of 7 Next >

Answer 1

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Raw Materials (RM)
RM- April 30	32,000
RM purchases	171,000
		12,000	Indirect materials
		149,000	DM used
RM- May 31	42,000
Factory Payroll
Factory payroll	200,000
		46,000	Indirect labor
		154,000	DL used
	0
Factory Overhead
Indirect materials	12,000	84,700	Overhead applied
Indirect labor	46,000
Other overhead costs	115,500
Underapplied OH	88,800
Work in Process (WIP)
WIP - April 30	9,000
DM used	149,000
DL used	154,000	376,600	Cost of goods manuf.
Overhead applied	84,700
WIP - May 31	20,100
Finished Goods (FG)
FG - April 30	56,000
Cost of goods manuf.	376,600
		398,900	Cost of goods sold
FG - May 31	33,700

1. Cost of direct materials used
Beginning raw materials inventory	32,000
Plus purchases	171,000
Raw materials available	203,000
Less ending raw materials inventory	(42,000)
Total raw materials used	161,000
Less indirect materials used	(12,000)
Cost of direct materials used	149,000
2. Cost of direct labor used
Total factory payroll	200,000
Less indirect labor	(46,000)
Cost of direct labor used	154,000
3. Cost of goods manufactured
Beginning work in process inventory	9,000
Plus direct materials	149,000
Plus direct labor	154,000
Plus overhead applied	84,700
(55% of direct labor cost)
Total cost of work in process	396,700
Less ending work in process inventory	(20,100)
Cost of goods manufactured	376,600
4. Cost of goods sold
Beginning finished goods inventory	56,000
Plus cost of goods manufactured	376,600
Less ending finished goods inventory	(33,700)
Cost of goods sold	398,900
5. Gross profit
Sales	1,900,000
Cost of goods sold	(398,900)
Gross profit	1,501,100
6. Actual overhead incurred
Indirect materials	12,000
Indirect labor	46,000
Other overhead costs	115,500
Total actual overhead incurred	173,500
Overhead applied	84,700
Underapplied overhead	88,800