19-7 produotowing information is available for Lock-Tie Company, which produces

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19-7 produotowing information is available for Lock-Tie Company, which produces special-onder security Esercise products and uses a job order costing system. Cost flows in a job order costing system P1 P2 P3 P April 30 May 3 $43.000 52.000 Work in process Finished goods 10,200 63.000 21,300 35,600 Accivities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 210,000 345,000 15,000 80,000 120,000 1.400,000 Indirect materials... Other overhead costs.. Sales (received in cash)... Predetermined overhead rate based on direct labor cost······ 70% Compute the following amounts for the month of May 1. Cost of direct materials used. 2. Cost of direct labor used. 3. Cost of goods manufactured. 4. Cost of goods sold. 5. Gross profit. 6. Overapplied or underapplied overhead. Do not cnsider any underapplieod or overapplied overhead Check (3) $625,400 Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. Exercise 19-8 1. Raw materials purchases for cash. 2. Direct materials usage. Journal entries for materials P1 3. Indirect materials usage. Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. Exercise 19-9 1. Direct labor usage. 2. Indirect labor usage 3. Total payroll paid in cash. Journal entries for labor P2

Explanation / Answer

19-9) Journal entry :

date accounts & explanation debit credit 1 Work in process a/c 345000      Wages payable a/c 345000 (To record direct labour usage) 2 Manufacturing overhead a/c 80000      Wages payable a/c 80000 (TO record indirect labour usage) 3 Wages payable a/c 425000       Cash a/c 425000 (To record payroll paid in cash)

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