Question

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 $ 27,000 $ 57, eee Work in process 9,100 20,300 Finished goods 70,000 34,200 Activities and information for May Raw materials purchases (paid with cash) 191,000 Factory payroll (paid with cash) 300,000 Factory overhead Indirect materials 7,000 Indirect labor 69,000 Other overhead costs 118,000 Sales (received in cash) 1,600,000 Predetermined overhead rate based on direct labor cost 55% 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 B

Answer 1

Note Debit Credit. NO 118 www Particolare 1. Factory overhead . To other Account All (to reeloved other factory cost) 118 000 overhead 2. Hovk in Puolun inventory 127050 127050 Factory overhead (to mccould wouk in Puolen Inventory) wood Caloolation's :- » Cost of Direct Labouu med = Total Factory Indiveect Labour - - 3oouvo 69 ovo 231 veo Factory overhand cost of Divrect Labour x Jahr Poue determined overhead veate Based on Labour cost 231 ovo x 55% Diureet 121 OSO