Question

[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 $ $ 31,000 9,500 58,000 30,000 19, 100 33, 700 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) Pre determined overhead rate based on direct labor cost 178,000 100,000 9,000 23,000 94, 000 1, 100, 000 55% Direct labor usage. Indirect labor usage Total payroll paid in cash. epare journal entries for the above transactions for the month of May.

Answer 1

No.	Account titles	Debit	Credit
1	Raw Materials Inventory	$             178,000
	Cash		$         178,000.0
2	Work In Process Inventory	$             170,000
	Raw Materials Inventory		$         170,000.0
3	Factory Overhead	$                 9,000
	Raw Materials Inventory		$              9,000.0
4	Work In Process Inventory	$               77,000
	Factory Wages Payable		$           77,000.0
5	Factory Overhead	$               23,000
	Factory Wages Payable		$           23,000.0
6	Factory Wages Payable	$             100,000
	Cash		$         100,000.0
7	Facory Overhead	$               94,000
	Other Accounts		$           94,000.0
8	Work In Process	$               42,350
	Factory Overhead		$           42,350.0
	(77000*55%)
9	Cost of goods sold	$               83,650
	Factory Overhead		$           83,650.0

T-Accounts

Raw Materials(RM)
RM-April 30	$              31,000	$            9,000	Indirect Material
RM purchases	$            178,000	$        170,000	DM used(Bal. Fig.)
RM-May 31	$              30,000
Factory Payroll
Factory Payroll	$            100,000
		$          23,000	Indirect Labor
		$          77,000	DL used(Bal Fig.)
	$                       -
Factory Overhead
Indirect Materials	$                9,000	$          42,350	Overhead Applied
Indirect Labor	$              23,000		(77000*55%)
Other Overhead costs	$              94,000
Underapplied OH	$              83,650

Work In Process(WIP)
WIP-Apr 30	$            9,500
DM used(Bal. Fig.)	$        170,000
DL used(Bal Fig.)	$          77,000	$        279,750	Cost of goods Manufactured(Bal Fig.)
Overhead Applied	$          42,350
WIP-May 31	$          19,100
Finished Goods(FG)
FG-April 30	$          58,000
Cost of goods Manufactured(Bal Fig.)	$        279,750
		$        304,050	Cost of goods sold(Bal Fig.)
FG-May 31	$          33,700

Income Statement-Partial
Sales	$        1,100,000
Less:Cost of goods sold	$         (304,050)
Gross Profit	$            795,950
Cost of direct material used	$            170,000
Cost of diect labor used	$              77,000
cost of goods manufactured	$            279,750
Cost of goods sold	$            304,050
Gross Profit	$            795,950
Underapplied Overhead	$              83,650