The following information is available for Lock-Down Company, which produces spe
ID: 2378214 • Letter: T
Question
The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system.
Inventories April 30 May 31
Raw materials $40,000 50,000
Goods in process 9,600 19,500
Finished goods 60,000 33,200
Activities and Information for May 31
Raw materials purchases 189,000
Factory Payroll 400,000
Factory Overhead
Indirect materials 12,000
Indirect labor 75,000
Other overhead costs 100,500
Sales (received in cash) 1,200,000
Predetermined overhead rate 65%
Need Journal entries for the following:
1. Direct materials usage
2. Indirect materials usage
3. Direct Labor usage
4. Indirect Labor usage.
Explanation / Answer
1. Direct materials usage
Raw material purchases were 189,000, but raw material inventories grew by 10,000 and 12,000 were used for indirect materials: 189,000
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