Question

Use the following information to answer questions 7-11

[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
Inventories
Raw materials	$	33,000	$	58,000
Work in process		9,600		18,200
Finished goods		59,000		33,400
Activities and information for May
Raw materials purchases (paid with cash)				174,000
Factory payroll (paid with cash)				330,000
Factory overhead
Indirect materials				7,000
Indirect labor				82,000
Other overhead costs				103,500
Sales (received in cash)				2,000,000
Predetermined overhead rate based on direct labor cost				55	%

  

rev: 06_09_2015_QC_CS-17114

References

Section BreakUse the following information to answer questions 7-11

2.

value:
2.50 points

Required information

Exercise 15-8 Journal entries for materials LO P1

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.

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References

eBook & Resources

Hint #1

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3.

value:
2.50 points

Required information

Exercise 15-11 Adjusting factory overhead LO P4

Determine whether there is over or underapplied overhead.

Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

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References

eBook & Resources

Hint #1

Ask your instructor a questionCheck my work

Answer 1