Solution-Compute the cost of direct materials used

Compute the cost of direct materials used

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Reference no: EM133052877

Question - The Following information is available for Lock-Tire Company, which produces special-order security products and uses a job order costing system.

	April 30	May 31
Inventories
Raw Materials	$38,000	$47,000
Work in process	9,900	18,000
Finished goods	56,000	33,200
Activities and information for May
Raw materials purchases {paid with cash)		178,000
Factory payroll (paid with cash)		250,000
Factor overhead
Indirect materials		7,000
Indirect labor		57,500
Other overhead costs		107,500
Sales (received in cash)		1,100,000
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. Over-applied or under-applied overhead.

Reference no: EM133052877

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Compute the cost of direct materials used

Reference no: EM133052877

Reference no: EM133052877

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