Answer:
Lock-Tite Company
a Cost of direct materials used:
= $182,000
b. Cost of direct labor used:
= $150,000
c. Cost of goods manufactured:
= $466,000
d. Cost of goods sold:
= $520,000
Explanation:
a) Data and Calculations:
April 30 May 31
Inventories:
Raw materials $43,000 $54,000
Work in process 9,100 18,600
Finished goods 54,000 33,200
Activities and information for May Raw materials purchases
(paid with cash) 193,000
Factory payroll (paid with cash) 150,000
Factory overhead Indirect materials 16,000
Indirect labor 34,500
Other overhead costs 93,000
Total overhead costs = $143,500
Sales (received in cash) 1,700,000
Cost of goods sold 520,000
Gross profit 1,180,000
Raw materials
Account Titles Debit Credit
Beginning balance $43,000
Cash 193,000
WIP 182,000
Ending balance $54,000
Work in process
Account Titles Debit Credit
Beginning balance $9,100
Raw materials 182,000
Factor payroll 150,000
Factory overhead 143,500
Finished Goods 466,000
Ending balance $18,600
Finished goods
Account Titles Debit Credit
Beginning balance $54,000
Work-in-Process 466,000
Cost of Goods Sold 520,000
Ending balance $33,200
