Question

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. May 31 $ 49,000 20,000 34,000 April 30 Inventories Raw materials $ 40,000 Work in process 9,600 Finished goods 55,000 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 190,000 250,000 6,000 57,500 112,000 1,300,000 55% 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. View transaction list Journal entry worksheet < 1 2 Record other Factory overhead costs (excluding indirect materials and indirect labor). Record credit to Other Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Ans.	Transaction	General Journal	Debit	Credit
	1	Factory overhead	$112,000
		Other accounts		$112,000
		(To record other overhead costs)
	2	Work in process inventory	$105,875
		Factory overhead		$105,875
		(To record factory overhead applied)
	*Working notes for Transaction 2:
	*Calculations for direct labor cost:
		Factory payroll	$250,000
		Less: Indirect labor	-$57,500
		Direct labor cost	$192,500
	Overhead applied   = Direct labor cost * Predetermined overhead rate
		$192,500 * 55%
		$105,875