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The following information is available for Lock-Tite Company, which produces special-order security products and uses a...

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Accounting

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

April 30May 31
Inventories
Raw materials$27,000$51,000
Work in process9,20020,700
Finished goods66,00034,500
Activities and information for May
Raw materials purchases (paid with cash)197,000
Factory payroll (paid with cash)150,000
Factory overhead
Indirect materials13,000
Indirect labor34,500
Other overhead costs118,000
Sales (received in cash)1,100,000
Predetermined overhead rate based on direct labor cost55%

Compute the following amounts for the month of May usingT-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 & Explanation Solved by verified expert
4.1 Ratings (634 Votes)
1 Cost of Direct material used Particulars Amount Beginning Raw material inventory 27000 add Raw material purchase 197000 Total Raw material available for use 224000 less ending raw material inventory 51000 Total cost of raw used In production 173000 less cost of    See Answer
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