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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 | $ | 35,000 | | | $ | 49,000 | |
| Work in process | | 9,300 | | | | 19,800 | |
| Finished goods | | 52,000 | | | | 34,700 | |
| Activities and information for May | | | | | | | |
| Raw materials purchases (paid with cash) | | | | | | 171,000 | |
| Factory payroll (paid with cash) | | | | | | 150,000 | |
| Factory overhead | | | | | | | |
| Indirect materials | | | | | | 7,000 | |
| Indirect labor | | | | | | 34,500 | |
| Other overhead costs | | | | | | 107,000 | |
| Sales (received in cash) | | | | | | 1,300,000 | |
| Predetermined overhead rate based on direct labor cost | | | | | | 55 | % |
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Compute the following amounts for the month of May using T-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.
*Do not consider any underapplied or overapplied overhead.
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