Required information Use the following information to answer

Required information Use the following information to answer questions [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system April 360 May 31 Inventories Raw materials Work in process Finished goods $45,000 55,000 20,700 34,500 9,800 53,000 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 179,000 200,000 Indirect materials Indirect labor Other overhead costs 12,000 46,000 117,500 1,200,000 Sales (received in cash) Predetermined overhead rate based on direct labor cost 55%

Solution

Raw Material:-

RM-April 30

45000

12000

Indirect Material

RM Purchases

179000

157000

DM used (1)

RM-May31

55000

WIP:-

WIP-April 30

9800

DM used

157000

384800

Cost of goods mfr (3)

DL used (2)

154000

O/H applied

(154000 * 55%)

84700

WIP-May31

20700

Factory Payroll:-

Factory Payroll

200000

46000

Indirect Labour

154000

DL used

Finished Goods:-

FG-April 30

53000

Cost of goods mfr

384800

403300

Cost of goods sold (4)

FG-May31

34500

Factory O/H:-

Indirect Material

12000

84700

O/H applied

Indirect Labour

46000

Other O/H cost

117500

Underapplied O/H (6)

90800

Income Statement (Partial)

Sales

1200000

(-) COGS

403300

Gross Profit (5)

796700

RM-April 30	45000	12000	Indirect Material
RM Purchases	179000	157000	DM used (1)
RM-May31	55000