1. The following 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% |
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. Over applied or under applied overhead.
2. Use information in above table to prepare 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.