Question

The following information is available for Lock Tite Company, which produces special-order security products and uses a job order costing system April 3e May 31 $ 545. 18,600 65.0 56,eee 22,100 39,600 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 214.00 353,000 19,000 124.000 1.440, Determine whether there is over or underapplied overhead Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold Complete this question by entering your answers in the tabs below. Overhead Absorption General Journal Determine whether there is over or underapplied overhead. Factory Overhead Ove Absorption General Journal >

Answer 1

Solution 1:

Factory overhead
Particulars	Debit	Credit	Particulars
Indirect materials	$19,000.00	$215,200.00	Overhead applied
Indirect labor	$84,000.00	$11,800.00	Underapplied overhead (Bal Fig)
Other overhead costs	$124,000.00
Total	$227,000.00	$227,000.00	Total

Solution 2:

Journal Entries
Event	Particulars	Debit	Credit
1	Cost of goods sold Dr	$11,800.00
	To Factory overhead		$11,800.00
	(To close underapplied overhead)