1. Business
  2. Accounting
  3. the following information is available for locktite company which produces...

Question: the following information is available for locktite company which produces...

Question details

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 $ 37,000 $ 56,000
Work in process 9,500 18,000
Finished goods 60,000 33,200
Activities and information for May
Raw materials purchases (paid with cash) 178,000
Factory payroll (paid with cash) 200,000
Factory overhead
Indirect materials 7,000
Indirect labor 46,000
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.

  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.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution