Question

Required information

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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	$	42,000			$	42,000
Work in process		9,400				19,700
Finished goods		64,000				34,800
Activities and information for May
Raw materials purchases (paid with cash)						172,000
Factory payroll (paid with cash)						200,000
Factory overhead
Indirect materials						9,000
Indirect labor						46,000
Other overhead costs						99,000
Sales (received in cash)						1,500,000
Predetermined overhead rate based on direct labor cost						55	%

1. Direct labor usage.
2. Indirect labor usage.
3. Total payroll paid in cash.

Prepare journal entries for the above transactions for the month of May.

Answer 1