Question - The following information is available for Lock-Safe Company, which produces special-order security products and uses a job order cost accounting system.
Inventories
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INVENTORIES
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APRIL30
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MAY 31
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|
RAW MATERIALS
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43000
|
52000
|
|
WORK IN PROCESS
|
10200
|
21300
|
|
FINISHED GOODS
|
63000
|
35600
|
|
ACTIVITIES AND INFORMATION FOR MAY
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|
|
|
RAW MATERIALS PURCHASES (PAID WITH CASH)
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210000
|
|
FACTORY PAYROLL (PAID WITH CASH)
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345000
|
|
FACTORY OVERHEAD
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|
|
|
INDIRECT MATERIALS
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|
15000
|
|
INDIRECT LABOR
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|
80000
|
|
OTHER OVERHEAD COSTS
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|
120000
|
|
SALES (RECEIVED CASH)
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|
1400000
|
|
PREDETERMINED OVERHEAD RATE BASED ON DIRECT LABOR COST
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|
70%
|
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
6. Overapplied or under applied overhead