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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