6th Edition

ISBN: 9781259726972

Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 2, Problem 7E

Exercise 15-7 Cost flows in a job order costing system P1 P2 P3 P4

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

	April 30	May 31
Inventories……………….
Raw materials……………	$43,000	$ 52,000
Work in process……………….	10,200	21,300
Finished goods……………..	63,000	35,600
Aestivates and information for May
Raw materials purchases (paid with cash)……………		210,000
Factory payroll (paid with cash)……………..		345,000
Factory overhead
Indirect materials…………..		15,000
Indirect labor…………..		80,000
Other (received in cash)………..		120,000
Sales (received in cash)…………		1,400,000
Predetermined overhead rate based on direct labor cost…………..		70%

Compute the following amounts for the month of May.

Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.*

Gross profit.
Overapplied or underapplied overhead.

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Chapter 2, Problem 6E

Chapter 2, Problem 8E

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Chapter 2 Solutions

Managerial Accounting

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