Evaluate the cost of direct materials

Assignment Help Cost Accounting

Reference no: EM135663

The subsequent information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.

April 30 May 31

Inventories

Raw materials $ 40,000 $ 50,000

Goods in process 9,600 19,500

Finished goods 60,000 33,200

Activities and information for May

Raw materials purchases (paid with cash) 189,000

Factory payroll (paid with cash) 400,000

Factory overhead

Indirect materials 12,000

Indirect labor 75,000

Other overhead costs 100,500

Sales (received in cash) 1,200,000

Predetermined overhead rate based on direct labor cost 65%

Evaluate the subsequent amounts for the month of May.

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.

Reference no: EM135663

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