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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 Inventories Raw materials $ 42,000 $ 54,000 Work in process 9,100 20,500 Finished goods 64,000 33,500 Activities and information for May Raw materials purchases (paid with cash) 180,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 8,000 Indirect labor 34,500 Other overhead costs 110,500 Sales (received in cash) 1,900,000 Predetermined overhead rate based on direct labor cost 55 % 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) M - April 30 M purchases IP - April 30 M used L used 42,000 34 500 Indirect materials Cost of goods manuf 180,000 8,000 DM used Overhead applied 179 500 Finished Goods (FG) Factory Overhead G - April 30 Cost of goods sold Indirect materials Indirect labor Other overhead costs Overhead applied Cost of goods manuf G - May 31 nderapplied OH Income statement (partial) ales Cost of goods sold Gross profit

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