The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31
Inventories
Raw materials $44,000 $49,000
Work in process 9,300 19,800
Finished goods 67,000 34,600
Activities and information for May
Raw materials purchases (paid with cash) 185,000
Factory payroll (paid with cash) 250,000
Factory overhead
Indirect materials 10,000
Indirect labor 57,500
Other overhead costs 106,000
Sales (received in cash) 2,000,000
Pre-determined overhead rate based
on direct labor cost 55%
Compute the following amounts for the month of May using T-accounts.
Cost of direct materials used.
Cost of direct labor used.
Cost of goods manufactured.
Cost of goods sold.
Gross profit.
Overapplied or underapplied overhead.

Cost of Direct Material Used $134,900.

Under applied Overhead $36,000

Explanation:

Cost of Direct Material Used

Opening Material  $44,000

Add: Opening Work in Process $9,300

Add: Purchases $185,000

Less: Closing Material $49,000

Less: Closing Work in process $19,800

Less: Closing finished goods $34,600

= $134,900

Overhead Rate Application:

Budgeted Overhead 55% of direct labor cost [55% * 250,000] = $137,500

Actual Overhead is $173,500

Under applied Overhead is $36,000

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;