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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 $ $30,000 9,200 61,000 45,000 18,400 33,800 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 182,000 150,000 15,000 34,500 102,000 1,700,000 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. 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. Answer is complete but not entirely correct. April 30 RM purchases April 30 DM used Raw Materials (RM) 30,000 182,000 15,000 152,000 45,000 Work in Process (WIP) 9,200 152,000 150,000 X 83,600 X 380,000 14,800 Indirect materials DL used DM used Overhead applied May 31 Cost of goods manuf. May 31 Finished Goods (FG) Inventory 61,000 April 30 Indirect materials Factory Overhead 15,000 83,600 34,500 Overhead applied Cost of goods manuf. 380,000 X Indirect labor Other overhead costs 407,200 X Cost of goods sold 102,000 May 31 33,800 Underapplied OH 67.900 X Answer is complete but not entirely correct. Income statement (partial) Sales $ 1,700,000 Cost of goods sold (407,200) X Gross profit $ 1,292,800 Exercise 15-10 Journal entries for overhead LO P3 1. Incurred other overhead costs (record credit to Other Accounts). 2. Applied overhead to work in process. Prepare journal entries for the above transactions for the month of May. X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit A 1 Factory overhead 102,000 Other accounts 102,000 B 2 83,600 Work in process inventory Factory overhead 83,600

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