Question

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. May 31 $ 49,000 20,000 34,000 April 30 Inventories Raw materials $ 40,000 Work in process 9,600 Finished goods 55,000 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 190,000 250,000 6,000 57,500 112,000 1,300,000 55% 1. Raw materials purchases for cash. 2. Direct materials usage. 3. Indirect materials usage. Prepare journal entries for the above transactions for the month of May. View transaction list Journal entry worksheet < 1 2 3 Record raw material purchases for cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Ans.	Transaction	General Journal	Debit	Credit
	1	Raw materials inventory	$190,000
		Cash		$190,000
		(To record raw materials purchased)
	2	Work in process inventory	$175,000
		Raw materials inventory		$175,000
		(To record direct materials used)
	3	Factory overhead	$6,000
		Raw materials inventory		$6,000
		(To record indirect materials)
	*Working notes for Transaction 2:
	*Calculations for Direct materials:
		Beginning raw materials inventory	$40,000
		Add: Purchase of direct materials	$190,000
		Raw materials available	$230,000
		Less: Ending raw materials inventory	-$49,000
		Less: Indirect materials	-$6,000
		Direct materials used	$175,000