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Question - 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.
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.
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