Question

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

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 1,100,000 558 1. Raw materials purchases for cash 2. Direct materials usage. 3. Indirect materials usage. Prepare journal entries for the above transactions for the month of May. View transaction list < Prev 4 5 6 7 Next >

Answer 1

1. Raw materials purchases for cash 2. Direct materials usage. 3. Indirect materials usage Prepare journal entries for the above transactions for the month of May. Credit Record raw material purchases for cash. Transaction General Journal Raw materials inventory | Cash Debit 191,000 191,000 Explanation: Raw materials purchases (paid with cash) = $191,000 Credit Record the entry to assign direct materials to jobs Transaction General Journal 2 Work in process inventory Raw materials inventory Debit 192,000 192,000

Explanation: Direct materials: Raw materials inventory, beginning Add: Purchases of raw materials Raw materials available for use Less: Raw materials inventory, ending Less: Indirect materials used $40,000 191,000 231,000 32,000 7,000 $192,000 Credit Record the entry to assign indirect materials to jobs. Transaction General Journal Factory overhead Raw materials inventory Debit 7,000 7,000 Explanation: Indirect materials used = $7,000