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. April 30 May 31 $ $39,000 9,500 52,000 54,000 19,600 34,500 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 178,000 100,000 8,000 23,000 100,000 1,900,000 555 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. < Prev 4 5 6 of 7 Next >

Answer 1

1
For Raw materials:
	Debit	Credit
Raw materials inventory	178000
Cash		178000
Work in Process inventory	155000		=39000+178000-8000-54000
Raw materials inventory		155000
Factory overhead	8000
Raw materials inventory		8000
2
For Labor:
	Debit	Credit
Work in Process inventory	77000		=100000-23000
Factory wages payable		77000
Factory overhead	23000
Factory wages payable		23000
Factory wages payable	100000
Cash		100000
3
For overhead:
	Debit	Credit
Factory overhead	100000
Other accounts		100000
Work in Process inventory	42350		=77000*55%
Factory overhead		42350