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

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 $ 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

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 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.

Click here for the SOLUTION

This entry was posted in Homework Help. Bookmark the permalink.

Comments are closed.