products and uses a job order costing system. information is available for Lock-

Question

products and uses a job order costing system. information is available for Lock-Tite Company, which produces special-order security Exercise 19-7 Cost flows in a job order costing system P1 P2 P3 P April 30 May 3 Inventories Raw materials Work in process $43,000 $ 52000 10.200 21.300 63.00035.600 Finished goods Activities and information for May Raw materials purchases (paid with cash)... Factory payroll (paid with cash).. Factory overhead 210.000 45.000 15.000 80,.000 20,000 1,400,000 Indirect labor Other overhead costs Predetermined overhead rate based on direct labor cost 70% Compute the following amounts for the month of May 1. Cost of direct materials used. 2. Cost of direct labor used. 3. Cost of goods manufactured. 4. Cost of goods sold. 5. Gross profit. 6. Overapplied or underapplied overhead. Do not consider any underapplied or overapplied overhead Check $625,400 Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. Exercise 19-8 1. Raw materials purchases for cash. 2. Direct materials usage. 3. Indirect materials usage. Journal entries for materials P Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. Exercise 19-9 1. Direct labor usage. 2. Indirect labor usage. 3. Total payroll paid in cash. Journal entries for labor P2 Use information in Exercise 19-7 to prepare journal entries for the following events for the month of May. 1. Incurred other overhead costs (record credit to Other Accounts). 2. Application of overhead to work in process. Exercise 19-10 Journal entries for overhead P3 Refer to information in Exercise 19-7. Prepare the journal entry to allocate (close) overapplied or underap Exercise 19-11 plied overhead to Cost of Goods Sold Adjusting factory overhead P4

Explanation / Answer

19-8) Journal entries :

Date accounts & explanation Debit credit Raw material a/c 210000       Cash a/c 210000 (To record material purchase) Work in process a/c (43000+210000-52000-15000) 186000      Raw material a/c 186000 (To record direct material usage) Manufacturing overhead a/c 15000      Raw material a/c 15000 (To record indirect material usage)

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