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

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

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The following information is available for Lock-Tite Company, which produces special-order security products and uses a
job order costing system.
Inventories
Raw materials
Work in process
Finished goods
Activities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory overhead
Indirect materials
Indirect labor
Other overhead costs
Sales (received in cash)
Predetermined overhead rate based on direct labor cost
April 30
$ 28,000
9,400
68,000
$
May 31
40,000
20,300
34,600
189,000
250,000
12,000
57,500
107,500
1,400,000
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.

Expert Answer:

Answer rating: 100% (QA)

To compute the requested amounts using T accounts we need to analyze the changes in the inventory accounts and record the corresponding cost flows Let
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