Question

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 $ $43,000 10, 200 63,000 52,000 21,300 35,600 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 210,000 345,000 15,000 80,000 120,000 1,400,000 70%

Answer 1

No	Transaction	General Journal	Debit	Credit
1	1	Raw material Inventory	$   2,10,000
		Cash		$                  2,10,000
		(Being raw material purchase for cash)
2	2	Goods in process Inventory	$   1,86,000
		Raw material Inventory		$                  1,86,000
		(Being Direct material usage recorded)
3	3	Factory overhead	$       15,000
		Raw material Inventory		$                      15,000
		(Being indirect material usage recorded)
		Workings:
	Raw Materials
	RM - April 30	$                                                                    43,000	$       15,000	Indirect materials
	RM Purchases	$                                                                2,10,000	$   1,86,000	DM used
	RM - May 31	$                                                                    52,000