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 $ $43,000 10,200 63,000 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 labo May 31 52,000 21,300 35, 680 210,000 345,000 15,800 80,000 120,000 1,400, 808 704 Exercise 15-9 Journal entries for labor LO P2 1. Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash.

Answer 1

1.

Transaction	General Journal	Debit	Credit
1	Work in process ($345,000-80,000)	$265,000
	Factory payroll		$265,000
2.	Factory overhead	$80,000
	Factory payroll		$80,000
3.	Factory payroll	$345,000
	Cash		$345,000

2.

Transaction	General Journal	Debit	Credit
1	Factory overhead	$120,000
	Other accounts		$120,000
2.	Work in process ($265,000*70%)	$185,500
	Factory overhead		$185,500