Saved Required information The following information applies to the questions di

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Saved 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 job order costing system Inventories Raw materials Work in process Finished goods $32,000 54,000 18,600 33,000 9,500 65,000 Activities and information, for May Raw materials purchases (paid with cash) Factory payroll (paid with cash) Factory overhead 175,000 150,000 Indirect materials Indirect labor other overhead costs 9,000 34, 500 115,500 1,500,00e sales (received in cash) Predetermined overhead rate based on direct labor cost 1. Raw materials purchases for cash 2. Direct materials usage 3. Indirect materials usage.

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Raw Materials    175,000.00    Cash    175,000.00 (To record purchase of raw material) 2 Work in Process    144,000.00    Raw Materials    144,000.00 (To record the issue of Raw material for production) 3 Factory Overhead        9,000.00    Raw Materials        9,000.00 (To record the use of Indirect material for production) Raw Material Beg. Bal.      32,000.00    144,000.00 DM Used (Bal. Fig.) Purch.    175,000.00        9,000.00 Indirect Materials End. Bal.      54,000.00 Answer 2. MUSIC WORLD RETAIL Partial Income Statement For the Year Ended Dec 31, 2017 Cost of Goods Sold: Merchandise Inventory, Beginning     185,000.00 Add: Cost of Purchases     240,000.00 Goods Available for Sale     425,000.00 Less: Merchandise Inventory, Ending (120,000.00) Cost of Goods Sold     305,000.00 WAVE-BOARD MANUFACTURING Partial Income Statement For the Year Ended Dec 31, 2017 Cost of Goods Sold: Merchandise Inventory, Beginning     220,000.00 Add: Cost of Goods Manufactured     576,000.00 Goods Available for Sale     796,000.00 Less: Merchandise Inventory, Ending (240,000.00) Cost of Goods Sold     556,000.00 Answer 3. BECK MANUFACTURING Schedule of Cost of Goods Manufactured For Year Ended Dec 31, 2017 Direct Materials        47,500.00 Direct Labor        28,500.00 Factory Overhead Costs        59,500.00 Total Manufacturing Costs     135,500.00 Add: WIP, Beginning        15,200.00 Total Cost of Work in Process     150,700.00 Less: WIP, Ending     (13,300.00) Cost of Goods Manufactured     137,400.00 BECK MANUFACTURING Partial Income Statement For Year Ended Dec 31, 2017 Cost of Goods Sold: Finished Goods Inventory, Beginning        20,200.00 Add: Cost of Goods Manufactured     137,400.00 Goods Available for Sale     157,600.00 Less: Finished Goods Inventory, Ending     (18,900.00) Cost of Goods Sold     138,700.00

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