Question

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.

Raw Materials (RM)					Work in Process (WIP)
	0					0
Factory Payroll					Finished Goods (FG)
	0					0
Factory Overhead

Income statement (partial)
	$0