Question

Connec Ch 15 HW Saved Help 6 Part 4 of 4 1.42 points Required information (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 $46,000 $ 44,080 Work in process 9,500 18,50 Finished goods 70,000 34,400 Activities and information for May Raw materials purchases (paid with cash) 193,000 Factory payroll (paid with cash) 150,000 Factory overhead Indirect materials 11,000 Indirect labor 34,500 Other overhead costs 105,000 Sales (received in cash) 1,800,000 Predetermined overhead rate based on direct labor cost 554 eBook Hint Print References 1. Incurred other overhead costs (record credit to Other Accounts). 2. Applied overhead to work in process Prepare journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet 6 of 7 Next > < Prev ME Graw

Answer 1

Transaction	Accounts titles and Explanation	Debit (in $)	Credit (in $)
1	Factory Overhead	$ 105,000
	Other accounts		$ 105,000
	(To incurred other overhead cost)
2	Work in process inventory ( $ 150,000 (-) $ 34,500 ) x 55%	$ 63,525
	Factory Overhead		$ 63,525
	(To record applied overhead to WIP)

7)

1)		Overhead rate
Estimated Overhead costs	/	Estimated Direct materials costs	=	Overhead rate
$ 900,000	/	$ 500,000	=	180% of Direct Material Costs

2 and 3)
	Factory Overhead
Actual overhead Costs	$ 873,200	$ 864,000 ( $ 480,000 x 180% )	Applied Overhead Costs
Underapplied Overhead ( $ 873,200 (-) $ 864,000 )	$ 9,200

4)
Date	General Journal	Debit	Credit
Dec. 31	Cost of goods sold	$ 9,200
	Factory overhead		$ 9,200
	(To record the Underapplied overhead)