The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.

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	$	41,000	$	34,000
Goods in process		9,900		18,400
Finished goods		50,000		35,000
Activities and information for May
Raw materials purchases (paid with cash)				189,000
Factory payroll (paid with cash)				200,000
Factory overhead
Indirect materials				11,000
Indirect labor				90,000
Other overhead costs				101,500
Sales (received in cash)				2,000,000
Predetermined overhead rate based on direct labor cost				55	%

Compute the following amounts for the month of May. (Input all amounts as positive values. Omit the "$" sign in your response.)

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.	Underapplied overhead	$

*Do not consider any underapplied or overapplied overhead.

rev: 03-04-11


Explanation:

1.	Cost of direct materials used
	Beginning raw materials inventory	$	41,000
	Plus purchases		189,000
	Raw materials available		230,000
	Less ending raw materials inventory		(34,000	)
	Total raw materials used		196,000
	Less indirect materials used		(11,000	)
	Cost of direct materials used	$	185,000
2.	Cost of direct labor used
	Total factory payroll	$	200,000
	Less indirect labor		(90,000	)
	Cost of direct labor used	$	110,000
3.	Cost of goods manufactured
	Beginning goods in process inventory	$	9,900
	Plus direct materials		185,000
	Plus direct labor		110,000
	Plus overhead applied (55% of DL cost)		60,500
	Total cost of goods in process		365,400
	Less ending goods in process inventory		(18,400	)
	Cost of goods manufactured	$	347,000
4.	Cost of goods sold
	Beginning finished goods inventory	$	50,000
	Plus: Cost of goods manufactured		347,000
	Less ending finished goods inventory		(35,000	)
	Cost of goods sold	$	362,000
5.	Gross profit
	Sales	$	2,000,000
	Cost of goods sold		(362,000	)
	Gross profit	$	1,638,000
6.	Overapplied or underapplied overhead
	Indirect materials	$	11,000
	Indirect labor		90,000
	Other overhead costs		101,500
	Total actual overhead incurred		202,500
	Overhead applied		60,500
	Underapplied overhead	$	142,000