Question

hapters 14 and 15 i Saved Help S: 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 42 $ $36,000 9,200 67,000 55,000 19, 180 33, 100 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 180,000 150,000 11,000 34,500 119,000 1,300,000 55% 1. Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May. View transaction list

Answer 1

Working Note: Total Factory Payroll Less: Indirect Labor Direct Labor $ $ $ 150,000.00 (34,500.00 115,500.00 Journal Entries Date Account Title and Explaination Credit Post. Ref. Debit $ A $ 115,500.00 Work In Process Factory Payroll Payable (To record Direct Labor Usage) $ 115,500.00 B $ 34,500.00 Factory Overhead Factory Payroll Payable (To record Indirect Labor Usage) 07 34,500.00 с $ 150,000.00 Factory Payroll Payable Cash (To record Cash Payment for total Factory Payroll) $ 150,000.00