Reference no: EM132526506

The following information is available for COVID-19 Company which produces special order 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

Manufacturing 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 costs  65%

Required:

Question 1. Compute the following amounts for the month of May

a. Cost of direct materials used

b. Cost of direct labor used

c. Cost of goods manufactured

d. Cost of goods sold

e. Gross Profit

f. Overapplied or underapplied overhead

Question 2. Prepare the journal entries for the following events for the month of May

a. Raw Materials purchases for cash

b. Direct Materials Usage

c. Indirect Materials Usage

d. Factory payroll costs in cash

e. Direct Labor Usage

f. Indirect labor Usage

g. Manufacturing overhead excluding indirect materials and indirect labor (record credit to other accounts)

h. Application of overhead to work in process

i. Allocate/close overapplied or underapplied overhead to Cost of Goods Sold