Question

Exercise 15-13 Adjusting factory overhead LO P4

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	$	43,500			$	53,000
Work in process		10,300				21,500
Finished goods		63,500				36,600
Activities and information for May
Raw materials purchases (paid with cash)						211,000
Factory payroll (paid with cash)						347,000
Factory overhead
Indirect materials						16,000
Indirect labor						81,000
Other overhead costs						121,000
Sales (received in cash)						1,410,000
Predetermined overhead rate based on direct labor cost						75	%

Determine whether there is over or underapplied overhead.
Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

Answer 1

this solution is for Lock tite .I see you have pasted some other question journal entries requirement here  .

1	cost of direct materials used			185,500
2	cost of direct labor used			266,000
3	cost of goods manufactued			639,800
4	cost of goods sold			666,700
5	Gross profit			743,300
6	overapplied or underapplied oh			28,000

Raw Materials					Work in process
RM-April 30	43,500				WIP-April30	10,300
purchases	211,000				DM used	185,500
		16,000	ind materials		DL used	266,000	639,800	cost of goods mfg
		185,500	DM used		OH applied	199500
RM-May 31	53,000				WIP-may 31	21,500
Facotry payroll					finished goods
Factory	347,000				Fg-april 30	63,500
payroll		81,000	ind labor		Cost of	639,800	666,700	COGS
		266,000	DL used		goods mfg
					end bal	36,600
Factory overhead
ind materials	16,000	199,500	OH applied
ind labor	34,500
other oh costs	121,000
		28,000	overapplied
income Statement(partial)
Sales			1,410,000
cost of goods sold			666,700
Gross profit			743,300

Trasan	General journal				Debit	Credit
1	Raw materials inventory				211,000
	cash					211,000
2	Work in process inventory				185,500
	Raw materials invnetory					185,500
3	Factory overhead				16,000
	Raw materials inventory					16,000
Trasan	General journal				Debit	Credit
1	Work in process inventory				266,000
	Factory wages payable					266,000
2	Factory overhead				81,000
	Factory wages payable					81,000
3	Factory wages payable				347,000
	cash					347,000
Trasan	General journal				Debit	Credit
1	Factory overhead				121,000
	other accounts					121,000
	Work in process inventory				199,500
	Factory overhead					199,500