Use the following information to answer questions 7-11 [The following informatio

Question

Use the following information to answer questions 7-11 [The following information applies to the questions displayed below] The following information is available for Lock-Tite Company, which roduces special-order security products and uses a job order costing system April 30 May 31 Inventories Raw materials Work in process Finished goods $ 43,000 $ 52,000 0.200 21.300 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 210,000 345,000 Indirect materials Indirect labor Other overhead costs 15,000 80,000 120,000 Sales (received in cash) 1400,000 Pre overhead rate based on direct labor cost Reference

Explanation / Answer

#4. Cost of goods sold: $652800

Beginning raw materials $ 43000 Add: Raw material purchases 210000 Raw materials available for use 253000 Less: Ending raw materials 52000 Raw materials used 201000 Less: Indirect raw materials 15000 Direct materials 186000 Direct labor ($345000 - $80000) 265000 Manufacturing overhead applied (70% x $265000) 185500 Total current manufacturing costs 636500 Add: Beginning work in process 10200 Total cost of work in process 646700 Less: Ending work in process 21300 Cost of goods manufactured $ 625400 Add: Beginning finished goods 63000 Cost of goods available for sale 688400 Less: Ending finished goods 35600 Cost of goods sold $ 652800

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