Question

Raw naterials $34,000 53,000 19,100 34,000 Hork in process 9.200 Finished gooda Activitiep and 63,000 information for May ed Raw materials purchasea (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect 178,000 250,000 14.000 material Indirect labor 57,500 Other overhead 91.000 costs Sales received in cash) Predetermined 1,900,000 nd overhead rate 558 based on direct labor cost 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 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. Raw Materials (RM) Work in Process (WIP) 0 Finished Goods (FG) Factory Overhead Income statement (partial)

Answer 1

Raw material
Beg balance	34000	145000	Direct Material used
Purchase	178000	14000	Indirect material
end balance	53000
Work in process
Beg balance	9200
Direct Material used	145000	433475	Cost of goods manufactured
Direct labor	192500
Overheads	105875
end balance	19100
Finished goods
Beg balance	63000
Cost of goods manufactured	433475	462475	Cost of goods sold
End balance	34000
Manufacturing overheads
Beg balance
Indirect material	14000	105875	Overheads applied
Indirect labor	57500	56625	Under applied
Other overheads	91000

	Income statement
	Sales	1900000
Less	Cost of goods sold	462475
	Gross profit	1437525