Question

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

Saved Required information [The following information applies to the questions displayed below.) 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 $40,000 9.900 64,000 32,000 20,600 35,000 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 191,000 250,000 7.000 57,500 107,500 1,100,000 551 1. Incurred other overhead costs (record credit to Other Accounts). 2. Application of overhead to work in process Prepare journal entries for the above transactions for the month of May.

Answer 1

Journal entry to record other factory overhead costs
Transaction	General Journal	Debit	Credit
1	Factory overhead	$107,500
	Various other accounts		$107,500
	(To record other overhead costs)
Journal entry to record overhead applied
Transaction	General Journal	Debit	Credit
2	Work in process inventory (250,000*55%)	$137,500
	Factory overhead		$137,500
	(To record overhead applied)