menu
bartleby
search
close search
Hit Return to see all results

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.

Question

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 %
 

 

  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.
 

check_circleAnswer
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

Date

Particular

Debit ($)

Credit ($)

 

Raw material inventory  (WN1)

        Cash

210,000

 

210,000

 

 

Work in process

      Raw material inventory

 

186,000

 

186,000

 

 

Factory overhead

      Raw material inventory

 

15,000

 

15,000

...
fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Hi, I'm not sure which values to use because I assumed it would be the difference between the two va...

A: Trading investments: Trading investments refer to the short term investments bought by the company i...

question_answer

Q: Which of the following is not a condition that must be satisfied before interest capitalization can ...

A: Capitalized Interest: Interest is usually paid on the amount borrowed and it is shown as an expense ...

question_answer

Q: Effects of stock split and stock dividend on EPSRequired:a. For the year ended December 31, 2015, Fi...

A: Stock split means new shares are issued to the current shareholder’s in proportion of their existing...

question_answer

Q: Cash collections from customers$710  Purchase of used equipment 155  Depreciation expense 155  Sale ...

A: Cash flow from Invetsing activity means the cash inflow or outflow made by an organisation in purcha...

question_answer

Q: Indicate whether each of the following activities would be reported on the statement of cash flows a...

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for ...

question_answer

Q: Discuss why small businesses might not choose to extensively engage in the budget process.  Also dis...

A: Budgeting is an important part of the business process. Without budgeting a business can not track i...

question_answer

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, t...

A: 1.a. Compute the last year's CM ratio. 

question_answer

Q: I need this( https://www.chegg.com/homework-help/top-quality-appliance-long-beach-purchased-franchis...

A: The required journal entries are as follows :(Explanations have been avoided as per the requirement ...

question_answer

Q: On January 1, 2019, Lin plc issued a convertible bond with a par value of £50,000 inthe market for £...

A: Given :Par value of the Bond - € 50,000Interest rate                 - 10%Issued price              ...

Sorry about that. What wasn’t helpful?