Question

Use the following information to answer questions [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 3e May 31 Ft 1 of 3 $40,000 9,209 57,000 45,000 20,200 34,500 nits 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 178,000 200,000 3 00:48:19 16,000 46,000 107,000 1,500,000 55% eBook Exercise 15-8 Journal entries for materials LO P1 1. Raw materials purchases for cash. 2. Direct materials usage. 3. Indirect materials usage.

Can somebody help with these problems? also can be possible add the formulas to get the results I need. thks

I need help with at least 15-1A part 2 and 3!!?

Answer 1

Exercises 15-8:

In the books of Lock-Tite Company:

1.

Transaction	Account Titles	Debit	Credit
		$	$
1.	Raw Materials	178,000
	Cash		178,000
	To record purchase of materials
2.	Work in Process	157,000
	Raw Materials		157,000
	To record usage of direct materials
3.	Factory Overhead		16,000
	Raw Materials Inventory
	To record usage of indirect materials

2.

Transaction	Account Titles	Debit	Credit
		$	$
1.	Work in Process	154,000
	Factory Wages Payable		154,000
	To record direct labor usage
2.	Factory Overhead	46,000
	Factory Wages Payable		46,000
	To record indirect labor usage
3.	Factory Wages Payable	200,000
	Cash		200,000
	To record payment of factory payroll

3.

Transaction	Account Titles	Debit	Credit
		$	$
1.	Factory Overhead	107,000
	Other Accounts		107,000
	To record other overheads costs
2.	Work in Process ( $ 154,000 x 55 % )	84,700
	Factory Overhead		84,700
	To record application of overhead

Problem 15 -IA:

2. In the books of Marcelino Co. :

Transaction	Account Titles	Debit	Credit
		$	$
a.	Raw Materials	510,000
	Accounts Payable		510,000
b.	Work in Process	457,000
	Raw Materials		457,000
c.	Work in Process	355,000
	Cash		355,000
d.	Factory Overhead	29,000
	Cash		29,000
e.	Work in Process ( 355,000 x 50 % )	177,500
	Factory Overhead		177,500
f.	Factory Overhead	173,000
	Raw Materials		58,000
	Cash		55,000
	Accumulated Depreciation		60,000
g.	Finished Goods	865,500
	Work in Process		865,500
h.	Cost of Goods Sold	354,500
	Finished Goods		354,500
i.	Cash	680,000
	Sales Revenue		680,000
j.	Cost of Goods Sold ( 29,000 + 173,000 - 177,500)	24,500
	Factory Overhead		24,500

3.

Marcelino Company Schedule of Cost of Goods Manufactured For the month ended April 30
Direct materials used	$ 457,000
Direct labor used	355,000
Factory overhead applied	177,500
Total manufacturing costs	989,500
Add: Work in process, March 31	132,500
Total cost of work in process	1,122,000
Less: Work in process, April 30	256,500
Cost of goods manufactured	$ 865,500