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
Raw materials $ 40,000 $ 50,000
Goods in process 9,600 19,500
Finished goods 60,000 33,200
Activities and information for May
Raw materials purchases (paid with cash) 189,000
Factory payroll (paid with cash) 400,000
Indirect materials 12,000
Indirect labor 75,000
Other overhead costs 100,500
Sales (received in cash) 1,200,000
Predetermined overhead rate based on direct labor cost 65 %
1. Factory payroll costs in cash.
2. Direct labor usage.
3. Indirect labor usage.
Prepare journal entries for the above events for the month of May.
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