Solution-Compute the cost of direct materials used

Compute the cost of direct materials used

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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	$27,000	$46,000
Work in process	9,200	19,100
Finished goods	65,000	34,400
Activities and information for May
Raw materials purchases (paid with cash)		197,000
Factory payroll (paid with cash)		250,000
Factory overhead
Indirect materials		12,000
Indirect labor		57,500
Other overhead costs		110,500
Sales (received in cash)		1,400,000
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.

Reference no: EM132429628

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Compute the cost of direct materials used

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Reference no: EM132429628

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