Use the following information to answer questions 711 The fo

Use the following information to answer questions 7-11 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 $39,000 $ 30,000 9,100 20,500 69,00034,500 Raw materials Work in process Finished goods Activities and information for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 186,000 300,000 Indirect materials Indirect labor Other overhead costs Sales (receved in cash) Predetermined overhead rate based on direct labor cost 7,000 71,000 111,000 1100,000 55%

Solution

Raw Materials (RM) Work in Process (WIP) Beg. Bal. - Apr-30          39,000.00        7,000.00 Indirect Material Beg. Bal. - Apr-30        9,100.00    531,550.00 Finsihed Goods (FG) RM Purchased        186,000.00    188,000.00 Direct Material (Bal Fig.) Direct Material    188,000.00 (Bal. Fig.) Direct Labor    229,000.00 Factory Overhead    125,950.00 End. Bal. - May 31          30,000.00 End. Bal. - May 31      20,500.00 Factory Payroll Finished Goods (FG) Factory Payroll        300,000.00      71,000.00 Indirect Labor Beg. Bal. - Apr-30      69,000.00    566,050.00 Cost of Goods Sold    229,000.00 Direct Labor Work in Process (WIP)    531,550.00 End. Bal. - May 31                         -   End. Bal. - May 31      34,500.00 Factory Overhead Indirect Materials            7,000.00    125,950.00 Overhead Applied Indierct Labor          71,000.00 ($229,000 X 55%) Other Overheads        111,000.00      63,050.00 Underapplied Overhead End. Bal. - May 31                         -   Income Statement (Partial) Sales    1,100,000.00 Cost of Goods Sold        566,050.00 Gross Profit        533,950.00 Journal Entry Date Particulars Dr. Amt. Cr. Amt 1 Cost of Goods Sold    63,050.00    Factory Overhead    63,050.00 (record the underapplied overhead)