Question

how do i calculate?

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 $ $32,000 9,300 66,000 37,000 19,200 33, 100 Inventories Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead Indirect materials Indirect labor Other overhead costs Sales (received in cash) Predetermined overhead rate based on direct labor cost 187,000 250,000 11,000 57,500 94,500 1,000,000 55% 1. Incurred other overhead costs (record credit to Other Accounts). 2. Applied overhead to work in process. Prepare journal entries for the above transactions for the month of May.

Answer 1

Transaction General Journal Credit factory one Debit & 94,500 tory overhead $ 94,500 Other accounts I(To record other factor y overhead costs $ 105,875 work in process inventory factory overhead (to record work in process inventory) $ 105,875 cost Calculation : of direct labor used & Total factory payroll - Indirect labor = $ 250,000 - $ 57,500 = $ 192,500 Factory overhead = Cost of direct labor used X Predetermined overhead rate based on direct labor cost = 2 $ 192,500 x 55% $ 105,875