Question

Required information 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 30 May 31 $ $ 41,000 9,500 55,000 31,000 19,800 34,400 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 185,000 150,000 9,000 34,500 110,000 1,400,000 55% Exercise 15-8 Journal entries for materials LO P1 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 Journal entry worksheet < A B C Record raw material purchases for cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

	1
	For Raw materials:
	General Journal	Debit	Credit
1	Raw materials inventory	185000
	Cash		185000
2	Work in Process inventory	186000		=41000+185000-9000-31000
	Raw materials inventory		186000
3	Factory overhead	9000
	Raw materials inventory		9000
	2
	For Labor:
	General Journal	Debit	Credit
1	Work in Process inventory	115500		=150000-34500
	Factory wages payable		115500
2	Factory overhead	34500
	Factory wages payable		34500
3	Factory wages payable	150000
	Cash		150000
	3
	For overhead:
	General Journal	Debit	Credit
1	Factory overhead	110000
	Other accounts		110000
2	Work in Process inventory	63525		=115500*55%
	Factory overhead		63525