Question

Required information Use the following information to answer questions [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 $ $34,000 9,800 50,000 49,000 19,000 34,600 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 195,000 100,000 15,000 23,000 91,000 1,800,000 55%

Answer 1

Raw Materials					Work in process
RM-April 30	34,000				WIP-April30	9,800
purchases	195,000				DM used	165,000
		15,000	ind materials		DL used	77,000	275,150	cost of goods mfg
		165,000	DM used		OH applied	42350
RM-May 31	49,000				WIP-may 31	19,000
Facotry payroll					finished goods
Factory	100,000				Fg-april 30	50,000
payroll		23,000	ind labor		Cost of	275,150	290,550	COGS
		77,000	DL used		goods mfg
					end bal	34,600
Factory overhead
ind materials	15,000	42,350	OH applied
ind labor	23,000
other oh costs	91,000
underapp	86,650
income Statement(partial)
Sales			1,800,000
cost of goods sold			290,550
Gross profit			1,509,450
Trasan	General journal				Debit	Credit
1	Raw materials inventory				195,000
	cash					195,000
2	Work in process inventory				165,000
	Raw materials invnetory					165,000
3	Factory overhead				15,000
	Raw materials inventory					15,000
Trasan	General journal				Debit	Credit
1	Work in process inventory				77,000
	Factory wages payable					77,000
2	Factory overhead				23,000
	Factory wages payable					23,000
3	Factory wages payable				100,000
	cash					100,000
Trasan	General journal				Debit	Credit
1	Factory overhead				91,000
	other accounts					91,000
	Work in process inventory				42,350
	Factory overhead					42,350