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 30 $43,800 10.2ee 63,000 May 31 $ 52,888 35,600 21,300 ke 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, ese 345,000 15,000 80,000 120,000 1,400,000 704 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.

Answer 1

Journal

Date	Account title	Debit	Credit
1	Raw materials Inventory	210,000
	Cash		210,000
	(To record purchase of raw material for cash)
2	Work in process	186,000
	Raw materials Inventory		186,000
	(To record direct material usage)
3	Manufacturing Overhead	15,000
	Raw materials Inventory		15,000
	(To record indirect material usage)

Raw materials Inventory, beginning = $43,000

Raw materials Inventory, ending = $52,000

Purchase of raw materials = $210,000

Indirect materials = $15,000

Direct material usage = Raw materials Inventory, beginning + Purchase of raw materials - Raw materials Inventory, ending - Indirect materials

= 43,000 + 210,000 - 52,000 - 15,000

= $186,000

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