The following information is available for SafeLife Company,which produces special-order security products and uses a job ordercost accounting system.
April 30
May 31
Inventories
Raw materials
$
27,000
$
41,000
Goods in process
9,000
20,600
Finished goods
70,000
33,000
Activities and information for May
Raw materials purchases (paid with cash)
183,000
Factory payroll (paid with cash)
500,000
Factory overhead
Indirect materials
6,000
Indirect labor
74,000
Other overhead costs
95,500
Sales (received in cash)
1,500,000
Predetermined overhead rate based on direct labor cost
55
%
Compute the following amounts for the month ofMay. (Omit the "$" sign in yourresponse.)
1.
Cost of direct materials used.
$
2.
Cost of direct labor used.
$
3.
Cost of goods manufactured. (PLEASE EXPLAIN THIS ANSWER)
$
4.
Cost of goods sold.*
$
5.
Gross profit.
$
The following information is available for SafeLife Company,which produces special-order security products and uses a job ordercost accounting system. |
| April 30 | May 31 | |||
Inventories |
|
|
|
|
|
Raw materials | $ | 27,000 | $ | 41,000 | |
Goods in process |
| 9,000 |
| 20,600 | |
Finished goods |
| 70,000 |
| 33,000 | |
Activities and information for May |
|
|
|
| |
Raw materials purchases (paid with cash) |
|
|
| 183,000 | |
Factory payroll (paid with cash) |
|
|
| 500,000 | |
Factory overhead |
|
|
|
| |
Indirect materials |
|
|
| 6,000 | |
Indirect labor |
|
|
| 74,000 | |
Other overhead costs |
|
|
| 95,500 | |
Sales (received in cash) |
|
|
| 1,500,000 | |
Predetermined overhead rate based on direct labor cost |
|
|
| 55 | % |
Compute the following amounts for the month ofMay. (Omit the "$" sign in yourresponse.) |
| |||
1. | Cost of direct materials used. | $ |
|
2. | Cost of direct labor used. | $ |
|
3. | Cost of goods manufactured. (PLEASE EXPLAIN THIS ANSWER) | $ |
|
4. | Cost of goods sold.* | $ |
|
5. | Gross profit. | $ | |
Related questions
| 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 | $ | 38,000 | |
| Work in process | 9,800 | 18,200 | |||
| Finished goods | 63,000 | 33,000 | |||
| Activities and information for May | |||||
| Raw materials purchases (paid with cash) | 194,000 | ||||
| Factory payroll (paid with cash) | 330,000 | ||||
| Factory overhead | |||||
| Indirect materials | 13,000 | ||||
| Indirect labor | 65,000 | ||||
| Other overhead costs | 111,000 | ||||
| Sales (received in cash) | 1,200,000 | ||||
| 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. |
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The following information is available for Lock-Down Company, whichproduces special-order security products and uses a job order costaccounting system. |
| April 30 | May 31 | ||||
| Inventories | |||||
| Raw materials | $ | 37,000 | $ | 48,000 | |
| Goods in process | 11,000 | 19,500 | |||
| Finished goods | 68,000 | 35,800 | |||
| Activities and information for May | |||||
| Raw materials purchases (paid withcash) | 189,000 | ||||
| Factory payroll (paid with cash) | 390,000 | ||||
| Factory overhead | |||||
| Indirectmaterials | 14,000 | ||||
| Indirect labor | 76,000 | ||||
| Other overheadcosts | 98,000 | ||||
| Sales (received in cash) | 1,210,000 | ||||
| Predetermined overhead rate based ondirect labor cost | 65 | % | |||
| Prepare the journal entry to allocate (close) overapplied orunderapplied overhead to Cost of Goods Sold.(Omitthe "$" sign in your response.) |
The following information is available for Lock-Down Company, whichproduces special-order security products and uses a job order costaccounting system. |
| April 30 | May 31 | ||||
| Inventories | |||||
| Raw materials | $ | 37,000 | $ | 48,000 | |
| Goods in process | 11,000 | 19,500 | |||
| Finished goods | 68,000 | 35,800 | |||
| Activities and information for May | |||||
| Raw materials purchases (paid withcash) | 189,000 | ||||
| Factory payroll (paid with cash) | 390,000 | ||||
| Factory overhead | |||||
| Indirectmaterials | 14,000 | ||||
| Indirect labor | 76,000 | ||||
| Other overheadcosts | 98,000 | ||||
| Sales (received in cash) | 1,210,000 | ||||
| Predetermined overhead rate based ondirect labor cost | 65 | % | |||
| Prepare the journal entry to allocate (close) overapplied orunderapplied overhead to Cost of Goods Sold.(Omitthe "$" sign in your response.) |
