Required information IThe following information applies to the questions display

Question

Required information IThe 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 3eMay 31 Inventories Raw materials Work in process Finished goods $47,008 42,000 19,200 34,900 9,200 Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 178,000 30e, 000 Indirect materials Indirect labor Other overhead costs 15,900 69,800 92, 500 1,300,e00 Sales (received in cash) Predetermined overhead rate based on direct labor cost 55%

Explanation / Answer

Actual Direct Labor 300000 Predetermined Rate 55% of DLC OH Applied 165000 (300000*55%) Actual OH 176500 Under Applied OH 11500 Raw Material Account Finished Goods Account Particulars Amount Particulars Amount Particulars Amount Particulars Amount To Opening Balance 47000 By WIP 183000 To Opening Balance 52000 By Cost of Goods Sold 655100 To Purchases 178000 (Raw Material Consumed) To WIP Account 638000 (Balance Fig) By Closing Balance 42000 By Closing Balance 34900 Total 225000 Total 225000 Total 690000 Total 690000 Direct Labor Account Cost of Goods Sold Account Particulars Amount Particulars Amount Particulars Amount Particulars Amount To Cash Account 300000 By WIP 300000 To Finished Goods 655100 By Sales 666600 (Labor Paid) (Labor Consumed) To Factory OH 11500 (Balance Fig) Total 300000 Total 300000 Total 666600 Total 666600 Factory Overhead Account Particulars Amount Particulars Amount Sales Account To Indirect Material 15000 By WIP 165000 Particulars Amount Particulars Amount To Indirect Labor 69000 (AppliedFactoryOH ) TO Cost of GoodsSold 666600 By Sales 1300000 To Other Overhead Cost 92500 By Cost of Goods Sold 11500 To Gross Profit 633400 (Balance Fig) (Balance Fig) Total 176500 Total 176500 Total 1300000 Total 1300000 WIP Account Particulars Amount Particulars Amount To Opening Balance 9200 By FG 638000 To Direct Material 183000 (Balance Fig) To Direct Labor 300000 To Factory OH 165000 By Closing Balance 19200 Total 657200 Total 657200

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