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 Inventories Raw materials $ 29,000 $ 38,000 Work in process 9,600 18,800 Finished goods 65,000 33,600 Activities and information for May Raw materials purchases (paid with cash) 190,000 Factory payroll (paid with cash) 300,000 Factory overhead Indirect materials 17,000 Indirect labor 69,000 Other overhead costs 97,500 Sales (received in cash) 1,700,000 Predetermined overhead rate based on direct labor cost 55 % Incurred other overhead costs (record credit to Other Accounts). Applied overhead to work in process. Prepare journal entries for the above transactions for the month of

Answer 1

Here are your journal entries and ledger accounts

No.	Account titles	Debit	Credit
1	Raw Materials Inventory	$             190,000
	Cash		$         190,000.0
2	Work In Process Inventory	$             164,000
	Raw Materials Inventory		$         164,000.0
3	Factory Overhead	$               17,000
	Raw Materials Inventory		$           17,000.0
4	Work In Process Inventory	$             231,000
	Factory Wages Payable		$         231,000.0
5	Factory Overhead	$               69,000
	Factory Wages Payable		$           69,000.0
6	Factory Wages Payable	$             300,000
	Cash		$         300,000.0
7	Facory Overhead	$               97,500
	Other Accounts		$           97,500.0
8	Work In Process	$             127,050
	Factory Overhead		$         127,050.0
	(231000*55%)
9	Cost of goods sold	$               56,450
	Factory Overhead		$           56,450.0

Ledger accounts

Raw Materials(RM)
RM-April 30	$              29,000	$          17,000	Indirect Material
RM purchases	$            190,000	$        164,000	DM used(Bal. Fig.)
RM-May 31	$              38,000
Factory Payroll
Factory Payroll	$            300,000
		$          69,000	Indirect Labor
		$        231,000	DL used(Bal Fig.)
	$                       -
Factory Overhead
Indirect Materials	$              17,000	$        127,050	Overhead Applied
Indirect Labor	$              69,000		(231000*55%)
Other Overhead costs	$              97,500
Underapplied OH	$              56,450

Work In Process(WIP)
WIP-Apr 30	$            9,600
DM used(Bal. Fig.)	$        164,000
DL used(Bal Fig.)	$        231,000	$        512,850	Cost of goods Manufactured(Bal Fig.)
Overhead Applied	$        127,050
WIP-May 31	$          18,800
Finished Goods(FG)
FG-April 30	$          65,000
Cost of goods Manufactured(Bal Fig.)	$        512,850
		$        544,250	Cost of goods sold(Bal Fig.)
FG-May 31	$          33,600