Question

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

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

	Raw materials purchases for cash.
	Direct materials usage.
	Indirect materials usage.

	Direct labor usage.
	Indirect labor usage.
	Total payroll paid in cash.

	Incurred other overhead costs (record credit to Other Accounts).
	Application of overhead to work in process.

Answer 1

Journal entry :

Date	accounts & explanation	debit	credit
	Raw material
	Cash
	(To record purchase raw material)
	Work in process
	Raw material
	(To record direct material usage)
	Manufacturing overhead
	Raw material
	(To record indirect material usage)
	Work in process
	Wages payable
	(To record direct labour usage)
	Manufacturing overhead
	Wages payable
	(To record indirect labour usage)
	Wages payable
	Cash
	(To record payroll paid)
	Manufacturing overhead
	Others overhead
	(To record incurred other overhead)
	Work in process
	Manufacturing overhead
	(To record applied overhead)