What is the answer to the Cost of goods sold?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the answer to the Cost of goods sold?
![!
Required information
Use the following information to answer questions
[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.
April 30
May 31
Inventories
$46,000
9,500
56,000
$
30,000
19,600
35,000
Raw materials
Work in process
Finished goods
Activities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory overhead
Indirect materials
177,000
250,000
18,000
57,500
104,000
1,800,000
Indirect labor
Other overhead costs
Sales (received in cash)
Predetermined overhead rate based on direct labor cost
55%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7efdc13-0dc0-4f4b-a7af-1a61d8f2354f%2F845f17e9-64a0-4a3e-9ba5-24e38936f6b1%2Fokqcsra_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Use the following information to answer questions
[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.
April 30
May 31
Inventories
$46,000
9,500
56,000
$
30,000
19,600
35,000
Raw materials
Work in process
Finished goods
Activities and information for May
Raw materials purchases (paid with cash)
Factory payroll (paid with cash)
Factory overhead
Indirect materials
177,000
250,000
18,000
57,500
104,000
1,800,000
Indirect labor
Other overhead costs
Sales (received in cash)
Predetermined overhead rate based on direct labor cost
55%
Transcribed Image Text:*Do not consider any underapplied or overapplied overhead.
X Answer is complete but not entirely correct.
Raw Materials (RM)
Work in Process (WIP)
April 30
46,000
April 30
9,500
RM purchases
177,000
DM used
175,000
18,000
Indirect materials
DL used
192,500
Cost of goods
175,000
DM used
Overhead applied
105,875
463,275
manuf.
May 31
30,000
|Мaу 31
19,600
Finished Goods (FG)
Factory Overhead
April 30
Cost of goods
manuf.
56,000
Indirect materials
18,000
463,275
Indirect labor
57,500
Other overhead
0X Cost of goods sold
104,000
costs
May 31
519,275
105,875
Overhead applied
Underapplied OH
73,625
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