Required information

Use the following information to answer questions

[The following information applies to the questionsdisplayed below.]

The following information is available for Lock-Tite Company, whichproduces special-order security products and uses a job ordercosting system.

	April 30				May 31
Inventories
Raw materials	$	31,000			$	30,000
Work in process		9,500				18,200
Finished goods		54,000				34,000
Activities and information forMay
Raw materials purchases (paidwith cash)						197,000
Factory payroll (paid withcash)						200,000
Factory overhead
Indirect materials						17,000
Indirect labor						46,000
Other overhead costs						112,500
Sales (received in cash)						2,000,000
Predetermined overhead ratebased 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 usingT-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.

  

Raw Materials (RM) Work in Process (WIP) April 30 31,000 17,000 Indirect materials April 30 9,500 335,000 Cost of goods manuf. RMpurchases 197,000 181,000 DM used DM used 181,000 DL used 154,000 Overheadapplied 87,175 May 31 30,000 May 31 96,675 FinishedGoods (FG) FactoryOverhead April 30 54,000 Indirectmaterials 17,000 Cost of goodsmanuf. Indirectlabor 46,000 Cost of goodssold Other overheadcosts 112,500 May 31 54,000 46,000 Overheadapplied UnderappliedOH 129,500

	Income statement (partial) Sales $2,000,000 Cost of goodssold Grossprofit $2,000,000