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The following information is available for Lock-Down Company, which produces spe

ID: 2504845 • 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.

  

  

  

Prepare journal entries for the above events for the month of May. (Omit the "$" sign in your response.)

1. Factory Payroll - $400,000

Cash - $400,000

2. Goods is process invetory - ? (need answer)

Factory Payroll - ? (need answer)

3. Factory Overhead - $75,000

Factory Payroll - $75,000

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

Explanation / Answer

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

April 30 May 31

Inventories

Raw materials $ 43,000 $ 34,000

Goods in process 9,100 18,600

Finished goods 60,000 33,500

Activities and information for May

Raw materials purchases (paid with cash) 173,000

Factory payroll (paid with cash) 400,000

Factory overhead

Indirect materials 8,000

Indirect labor 68,000

Other overhead costs 106,000

Sales (received in cash) 1,100,000

Predetermined overhead rate based on direct labor cost 55%