Question

Use the following information to answer questions Skip to question [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 $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 %

Answer 1

Answer:

Missing word "a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash.  Prepare journal entries for the above transactions for the month of May"

S/n    General Journal                           Debit         Credit

a        Work in Process inventory       $265,000

         ($345,000 - $80,000)

                 Factory wages payable                        $265,000

          (To record for Direct labor usage)

b        Factory overhead                      $80,000

                 Factory wages payable                        $80,000

         (To record for Indirect labor usage)

c        Factory wages payable             $345,000

                Cash                                                        $345,000

         (To record for Total payroll paid in cash)