Determine and Use Overhead Rate The following selected ledger accounts of the Lakewood Manufacturing Company are for May (the fifth month of its accounting year); Material Inventory May 1 balance May debits 100,000 May credits 375,000 312,500 Factory Overhead May debits 400,000 May 1 balance 35,000 May credits 360,000 Work in Process Inventory May 1 balance May debits: 70,000 May credits 1,100,000 Direct material Direct labor Man. overhead 322,500 450,000 360,000 Factory Payroll Payable 570,000 May 1 balance 125,000 May credits 490,000 May debits Finished Goods Inventory May 255,000 balance 255,000 May credits 1,275,000 May debits 1,100,000