Question

Use the following information to answer questions [The following information applies to the questions displayed below.]...

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 30 May 31
Inventories
Raw materials $ 32,000 $ 36,000
Work in process 10,000 18,700
Finished goods 65,000 34,100
Activities and information for May
Raw materials purchases (paid with cash) 172,000
Factory payroll (paid with cash) 150,000
Factory overhead
Indirect materials 10,000
Indirect labor 34,500
Other overhead costs 117,000
Sales (received in cash) 1,100,000
Predetermined overhead rate based on direct labor cost 55 %

Exercise 15-7 Cost flows in a job order costing system LO P1, P2, P3, P4

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.

Raw Materials (RM) Work in Process (WIP)
Beginning Balance Indirect materials Beginning Balance Cost of goods manuf.
RM purchases DM used DM used
DL used
Overhead applied
Ending balance Ending balance
Finished Goods (FG) Factory Overhead
Beginning Balance Indirect materials Overhead applied
Cost of goods manuf. Indirect labor
Other overhead costs
Ending balance
Underapplied OH

Income statement (partial)

Sales

Cost of goods sold

Gross profit

Homework Answers

Answer #1
Raw materials (RM) Work in Process (WIP)
RM-April 30 32000 WIP-April 30 10000
RM purchases 172000 DM used 158000
10000 Indirect materials DL used 115500
158000 DM used Overhead applied 63525 328325 Cost of goods manuf.
RM-May 31 36000 WIP-May 31 18700
Finished goods (FG) Factory Overhead
FG-April 30 65000 Indirect materials 10000 63525 Overhead applied
Cost of goods manuf. 328325 Indirect labor 34500
359225 Cost of goods sold Other overhead costs 117000
FG-May 31 34100
Underapplied OH 97975
Income Statement (Partial)
Sales 1100000
Cost of goods sold 359225
Gross Profit 740775
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
[The following information applies to the questions displayed below.] The following information is available for Lock-Tite...
[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 30 May 31 Inventories Raw materials $ 40,000 $ 50,000 Work in process 9,100 18,500 Finished goods 60,000 33,200 Activities and information for May Raw materials purchases (paid with cash) 173,000 Factory payroll (paid with cash) 300,000 Factory overhead Indirect materials 14,000 Indirect labor 69,000 Other overhead costs 96,000 Sales...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [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 30 May 31 Inventories Raw materials $ 42,000 $ 42,000 Work in process 9,400 19,700 Finished goods 64,000 34,800 Activities and information for May Raw materials purchases (paid with cash) 172,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 9,000 Indirect labor 46,000 Other overhead costs...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [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 30 May 31 Inventories Raw materials $ 38,000 $ 55,000 Work in process 9,100 18,100 Finished goods 60,000 33,600 Activities and information for May Raw materials purchases (paid with cash) 177,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 7,000 Indirect labor 34,500 Other overhead costs...
The following information is available for Lock-Tite Company, which produces special-order security products and uses a...
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 $ 49,000 $ 50,000 Work in process 9,700 18,800 Finished goods 59,000 34,600 Activities and information for May Raw materials purchases (paid with cash) 174,000 Factory payroll (paid with cash) 250,000 Factory overhead Indirect materials 9,000 Indirect labor 57,500 Other overhead costs 109,500 Sales (received in cash) 1,900,000 Predetermined overhead rate based on...
[The following information applies to the questions displayed below.] The following information is available for Lock-Tite...
[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 30 May 31 Inventories Raw materials $ 50,000 $ 38,000 Work in process 9,200 18,500 Finished goods 59,000 34,300 Activities and information for May Raw materials purchases (paid with cash) 171,000 Factory payroll (paid with cash) 100,000 Factory overhead Indirect materials 17,000 Indirect labor 23,000 Other overhead costs 106,000 Sales...
[The following information applies to the questions displayed below.] The following information is available for Lock-Tite...
[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 30 May 31 Inventories Raw materials $ 40,000 $ 50,000 Work in process 9,100 18,500 Finished goods 60,000 33,200 Activities and information for May Raw materials purchases (paid with cash) 173,000 Factory payroll (paid with cash) 300,000 Factory overhead Indirect materials 14,000 Indirect labor 69,000 Other overhead costs 96,000 Sales...
Required information [The following information applies to the questions displayed below.] The following information is available...
Required information [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 30 May 31 Inventories Raw materials $ 42,000 $ 42,000 Work in process 9,400 19,700 Finished goods 64,000 34,800 Activities and information for May Raw materials purchases (paid with cash) 172,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 9,000 Indirect labor 46,000 Other overhead costs...
Required information [The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets...
Required information [The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories Beginning Inventory Ending Inventory Raw materials inventory $ 66,000 $ 43,000 Work in process inventory 404,000 541,000 Finished goods inventory 602,000 532,000 The following additional information describes the company's production activities for May. Raw materials purchases (on credit)...
The following information is available for Lock-Tite Company, which produces special-order security products and uses a...
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 $ 28,000 $ 33,000 Work in process 9,700 20,500 Finished goods 68,000 34,400 Activities and information for May Raw materials purchases (paid with cash) 180,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 12,000 Indirect labor 34,500 Other overhead costs 98,000 Sales (received in cash) 1,600,000 Predetermined overhead rate based on...
Required information [The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets...
Required information [The following information applies to the questions displayed below.] Sierra Company manufactures woven blankets and accounts for product costs using process costing. Data below are for one of its processing departments. The following information is available regarding its May inventories. Beginning Inventory Ending Inventory Raw materials inventory $ 60,000 $ 92,500 Work in process inventory 435,000 515,000 Finished goods inventory 633,000 605,000 The following additional information describes the company's production activities for May. Raw materials purchases (on credit)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT