Question: the following information is available for locktite company which produces...
The following information is available for Lock-Tite Company,
which produces special-order security products and uses a job order
|April 30||May 31|
|Work in process||9,500||18,000|
|Activities and information for May|
|Raw materials purchases (paid with cash)||178,000|
|Factory payroll (paid with cash)||200,000|
|Other overhead costs||90,500|
|Sales (received in cash)||1,300,000|
|Predetermined overhead rate based on direct labor cost||55||%|
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.