Required information PART ONE: [The following information applies to the questio

Question

Required information

PART ONE:

[The following information applies to the questions displayed below.]

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

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.

  
*Do not consider any underapplied or overapplied overhead.

PART TWO:

Required information

[The following information applies to the questions displayed below.]

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

1. Raw materials purchases for cash.

2. Direct materials usage.

3. Indirect materials usage

Prepare journal entries for the above transactions for the month of May.

PART THREE:

Required information

[The following information applies to the questions displayed below.]

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

1. Direct labor usage.

2. Indirect labor usage.

3. Total payroll paid in cash.

Prepare journal entries for the above transactions for the month of May.

PART FOUR;

Required information

[The following information applies to the questions displayed below.]

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

1. Incurred other overhead costs (record credit to Other Accounts).

2. Application of overhead to work in process.

Prepare journal entries for the above transactions for the month of May.

April 30 May 31 Inventories Raw materials $ 37,000 $ 54,000 Work in process 9,900 19,200 Finished goods 66,000 34,500 Activities and information for May Raw materials purchases (paid with cash) 186,000 Factory payroll (paid with cash) 200,000 Factory overhead Indirect materials 18,000 Indirect labor 46,000 Other overhead costs 119,000 Sales (received in cash) 1,700,000 Predetermined overhead rate based on direct labor cost 55 %

Explanation / Answer

Solution 1.1:

Cost of direct material used = $151,000

Solution 1.2:

Cost of direct labor used = $154,000

Solution 1.3:

Cost of goods manufactured = $380,400

Solution 1.4:

Cost of goods sold = $411,900

Solution 1.5:

Gross Profit = $1,288,100

Solution 1.6:

Underapplied overhead = $98,300

Note: As multiple questions are posted, i have answered first question with all sub parts as per chegg policy, kindly post separate question for answer of remaining questions.

Raw Material Inventory Particulars Debit Particulars Credit Beginning Balance $37,000.00 Manufacturing overhead (Indirect material) $18,000.00 Purchases $186,000.00 Direct material used (Bal Fig) $151,000.00 Ending Inventory $54,000.00 Total $223,000.00 Total $223,000.00

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