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Required information [The 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 30 May 31 Inventories       Raw materials$43,000  $52,000 Work in process 10,200   21,300 Finished goods 63,000   35,600 Activities and information for May       Raw materials purchases (paid with cash)     210,000 Factory payroll (paid with cash)     345,000 Factory overhead       Indirect materials     15,000 Indirect labor     80,000 Other overhead costs     120,000 Sales (received in cash)     1,400,000 Predetermined overhead rate based on direct labor cost     70%  Raw materials purchases for cash.Direct materials usage.Indirect materials usage.Prepare journal entries for the above transactions for the month of May.


Required information


[The 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 30   May 31  
Raw materials $ 43,000     $ 52,000  
Work in process   10,200       21,300  
Finished goods   63,000       35,600  
Activities and information for May              
Raw materials purchases (paid with cash)           210,000  
Factory payroll (paid with cash)           345,000  
Factory overhead              
Indirect materials           15,000  
Indirect labor           80,000  
Other overhead costs           120,000  
Sales (received in cash)           1,400,000  
Predetermined overhead rate based on direct labor cost           70 %


  1. Raw materials purchases for cash.
  2. Direct materials usage.
  3. Indirect materials usage.

Prepare journal entries for the above transactions for the month of May.

Step 1

Journal Entry: A journal entry, in accounting, is the logging of a transaction in an accounting journal that demonstrates a company's charge and credit balances. The total of the charges must equal the total of the credits or the journal entry is viewed as unbalanced.

Ram material: Fundamental substance in its normal, changed, or semi-handled state, utilized as a contribution to a creation procedure for ensuing adjustment or change into a completed decent.

Step 2

Pass journal entry



Debit ($)

Credit ($)


Raw material inventory  (WN1)







Work in process

      Raw material inventory







Factory overhead

      Raw material inventory






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