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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 $ $43,000 10,200 63,000 52,000 21,300 35, 600 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 210,000 345,000 15,000 80,000 120,000 1,400,000 708 Exercise 19-7 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. April 30 RM purchases Raw Materials (RM) 43,000 15,000 indirect materials 210,000 | 186,000 DM used April 30 DM used DL used Overhead applied Work in Process (WIP) 10.2007 625,400 Cost of goods manuf. 186,000 265,000 185.500 May 31 52,000 21,300 April 30 Cost of goods manuf. Finished Goods (FG) Inventory 63,000 $ 652,800 Cost of goods sold 625,400 Indirect materials Indirect labor Other overhead costs Factory Overhead 15,000 185,500 Overhead applied 80,000 120.000 35,600 29,500 Income statement (partial) Sales $ Cost of goods sold Gross profit $ 1.400,000 (652,800) 747,200 Exercise 19-15 Factory overhead computed, applied, and adjusted LO P3, P4 At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $750,000, and direct materials costs, $625,000. At year-end, the company's records show that actual overhead costs for the year are $830,000. Actual direct materials cost had been assigned to jobs as follows. Jobs completed and sold Jobs in finished goods inventory Jobs in work in process inventory Total actual direct materials cost $513,750 102,750 68.500 $685,000 1. Determine the predetermined overhead rate using predicted direct materials costs. 2&3. Enter the overhead costs incurred and the amounts applied to jobs during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req1 Req 2 and 3 Reg 4 Determine the predetermined overhead rate using predicted direct materials costs. = Choose Numerator: Estimated overhead costs Overhead Rate 1 Choose Denominator: 1 Estimated direct material costs $ Overhead Rate Overhead rate 120% 750,000 625,000 - Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Factory Overhead 830,000 Actual overhead 830,000 Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. View transaction list View journal entry worksheet No Date General Journal Credit Debit 8,000 Dec 31 Cost of goods sold Factory overhead 8,000 Exercise 19-16 Factory overhead computed, applied, and adjusted LO P3, P4 At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $1,680,000, and direct labor costs, $480,000. At year-end, the company's records show that actual overhead costs for the year are $1,652,000. Actual direct labor cost had been assigned to jobs as follows. Movies completed and released Movies still in production Total actual direct labor cost $425,000 50,000 $475,000 1. Determine the predetermined overhead rate for the year. 2&3. Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Req1 Req 2 and 3 Req 4 Determine the predetermined overhead rate for the year. Overhead Rate 1 Choose Denominator: Choose Numerator: Overhead Rate Overhead rate Reg 1 Req 2 and 3 Reg 4 Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied. Factory Overhead Journal entry worksheet Record entry to close underapplied /overapplied overhead. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Exercise 19-17 Overhead rate calculation, allocation, and analysis LO P3 Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the following costs during the year: direct materials costs, $650,000; direct labor costs, $3,000,000; and factory overhead costs applied, $1,800,000. 1. Determine the company's predetermined overhead rate for the year. 2. Assuming that the company's $71,000 ending Work in Process Inventory account for the year had $20,000 of direct labor costs, determine the inventory's direct materials costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the company's predetermined overhead rate for the year. Overhead Rate Choose Denominator: Choose Numerator: Overhead Rate Overhead rate Assuming that the company's $71,000 ending Work in Process Inventory account for the year had $20,000 of direct labor costs, determine the inventory's direct materials costs. Total cost of work in process inventory Direct materials

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